Here, P = Rs 250000, R = 10 p.c.p.a., T = 5 years
∴ Total interest = (P x R x T)/100
= (250000 x 10 x 5)/100
= 2500 x 10 x 5
= Rs 1,25,000
∴ Yearly interest = Total interest ÷ Time
= 1,25,000 ÷ 5 = Rs 25000
Total amount to be returned = Principal + Total interest
= 250000 + 125000 = Rs 375000
∴ The yearly interest is Rs 25,000 and Jethalal will have to return Rs 3,75,000 to the bank.