A man earns Rs. 12,500 as simple interest @ 5% per annum in 5 years. Find the principal amount deposited by the man in the bank.

Given:

A man earns Rs. 12,500 as simple interest at 5% per annum in 5 years.

Concept Used:

To find the principal amount, we'll use the formula for simple interest:

Interest = (Principal * Rate * Time) / 100.

Calculation:

Let's assume the principal amount deposited by the man as P.

According to the given information, the interest earned (I) is Rs. 12,500, the rate of interest (R) is 5%, and the time period (T) is 5 years.

Using the formula for simple interest, we have:

⇒ I = (P * R * T) / 100

Substituting the given values, we can solve for P:

⇒ 12,500 = (P * 5 * 5) / 100

⇒ 12,500 = 25P / 100

⇒ 12,500 * 100 = 25P

⇒ 1,250,000 = 25P

⇒ P = 1,250,000 / 25

⇒ P = 50,000

Therefore, the principal amount deposited by the man in the bank is Rs. 50,000.

So the answer is: Rs. 50,000