Given: Principal = Rs 1000 Time = 2 years Rate = 12.5% p.a Concept used: Amount = SI + P SI = PRT/100 P → principal R → rate of interest T → time Calculation: ⇒ Simple interest = (1000 × 12.5 × 2)/100 ⇒ Simple interest = 250 ⇒ Amount after 2 years = 1000 + 250 = Rs. 1250 ∴ The amount is Rs. 1250.