Multiple choice

A person invests Rs. 1.53 lakh in fixed deposit at 20% simple interest. Find his monthly income.

  1. Rs. 2,000

  2. Rs. 1,530

  3. Rs. 2,500

  4. Rs. 2,550
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Principal = 1,53,000. Rate = 20% per annum. Annual interest = 1,53,000 * 0.20 = 30,600. Monthly interest = 30,600 / 12 = 2,550.

AI explanation

The annual simple interest is calculated as Principal times Rate divided by 100, which is 153000 times 20 divided by 100, resulting in Rs. 30600. Since the fixed deposit is evaluated using simple interest, this Rs. 30600 represents the total interest accumulated over the entire year, not an annual payout. However, interpreting monthly income from this annual interest as intended by the question, we divide 30600 by 12, which gives Rs. 2550.

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