Q.At an annual simple interest rate of 5%, what amount of principal will yield a monthly interest of 1 rupee? (a) ₹ 120 (b) ₹ 200 (c) ₹ 240 (d) ₹ 20
Answer: C
Rate of interest (r)=5%
Time (t)=\(\cfrac{1}{12}\) years
Amount of interest (I)= ₹ 1
Therefore, the principal (p) is: \(\cfrac{100×I}{rt}\) rupees
=\(\cfrac{100×1}{5×\cfrac{1}{12}}\) rupees =\(\cfrac{1200}{5}\) rupees =240 rupees

Thus, at an annual simple interest rate of 5%, the principal of 240 rupees will yield 1 rupee of monthly interest.
Similar Questions