A bank gives 10% simple interest on deposits by senior citizens. Draw a line graph to illustrate the relation between the sum deposited and the simple interest earned.
Find from the graph:
(i) The annual interest obtainable for a investment of Rs 250
(ii) The investment one has to make in order to get an annual simple interest of Rs 70
Using $S I=\frac{P \times R \times T}{100}$
Where SI = simple interest
$\mathrm{P}=$ principal
$\mathrm{R}=$ rate of interest
$\mathrm{T}=$ time
We have:
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(i) Given sum deposited i.e P = 250 , R = 10%, Time = 1 year
using formula we have,
$S I=\frac{250 \times 10 \times 1}{100}$
$S I=25 \mathrm{Rs}$
Hence, the annual interest for an investment of 250 rs is 25 rs.
(ii) Given annual simple interest = 70 rs , R = 10%, T=1 year
using formula we have,
$70=\frac{P \times 10 \times 1}{100}$
$700=P$
Hence, he has to invest $700 \mathrm{rs}$ in order to get an annual simple interest of $70 \mathrm{rs}$