In what time will Rs.1,250, at 8% per annum, produce the same interest as Rs.2,000 does in 5 years at 0.5% simple interest?

To solve this problem, we first need to calculate the interest produced by Rs.2,000 in 5 years at 0.5% simple interest.

The formula for simple interest is I = PRT/100, where:

• I is the interest
• P is the principal amount (the initial amount of money)
• R is the rate of interest per year
• T is the time the money is invested for

So, the interest produced by Rs.2,000 in 5 years at 0.5% simple interest is:

I = (2000 * 0.5 * 5) / 100 = Rs.50

Now, we need to find out in what time will Rs.1,250 at 8% per annum produce the same interest of Rs.50.

We can rearrange the formula for simple interest to solve for T:

T = I * 100 / (P * R)

Substituting the given values:

T = 50 * 100 / (1250 * 8) = 0.5 years

So, Rs.1,250 at 8% per annum will produce the same interest as Rs.2,000 does in 5 years at 0.5% simple interest in 0.5 years.