correct answer is: c) ₹625

Explanation

Here, Sum means ‘Principal’.
Simple Interest (S.I.) = ₹ 250
Rate (r) = 8 % p.a.
Time (t) = 5 years
We know,
S.I. =\large\frac{p\ \times\ r\ \times\ t}{100}
Or, P =\large\frac{S.I.\ \ \times\ 100}{r\ \times\ t} _{[interchange]}
Putting the value, we get:
P =₹\large\frac{250\times100}{8\times5}
\rightarrow P =₹625
So, the principal amount is ₹625 .
Ans: A sum of ₹625 will yield a simple interest of ₹250 at a rate of 8% per annum in 5 years

This precise question can be conveyed differently as well:
1. Calculate the sum of money needed to produce a simple interest of ₹250 over a 5-year period with an annual interest rate of 8%.
2. Determine the principal amount that would yield a simple interest of ₹250 over a 5-year period at an interest rate of 8% per annum.
3. What is the principal sum required to accrue a simple interest of ₹250 over 5 years at a rate of 8% per annum?
4. Find out the initial investment needed to earn a simple interest of ₹250 in 5 years at a 8% per annum interest rate.
5. Calculate the principal sum required to generate a simple interest of ₹250 over a period of 5 years at an annual interest rate of 8%.