Q.Calculate the amount of money for which the monthly interest will be 1 rupee at an annual simple interest rate of 5%.

Rate of interest \((r) = 5\%\) Time \((t) = \cfrac{1}{12}\) year Interest amount \((I) = 1\) rupee \(\therefore\) Principal \((p) = \cfrac{100 \times I}{rt}\) rupees \(= \cfrac{100 \times 1}{5 \times \cfrac{1}{12}}\) rupees \(= \cfrac{1200}{5}\) rupees \(= 240\) rupees \(\therefore\) At an annual simple interest rate of \(5\%\), the monthly interest on ₹240 will be ₹1.
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