Multiple choice

The simple interest on Rs 10 for 4 months at the rate of 3 paise per rupee is -

  1. $Rs 1.20$
  2. $Rs 1.60$
  3. $Rs 2.40$
  4. $Rs 3.60$

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Principal = Rs 10. Rate = 3 paise per rupee per annum = 3% per annum. Time = 4 months = 4/12 = 1/3 year. Simple Interest = P × R × T / 100 = 10 × 3 × (1/3) / 100 = 10 × 1 / 100 = Rs 0.10. Wait, this calculation gives Rs 0.10, not Rs 1.20. Let me recalculate: 3 paise per rupee means 3 paise on Rs 1 for the given period. If the rate is 3 paise per rupee for 4 months, then on Rs 10, the interest is 30 paise = Rs 0.30. But if the rate is 3 paise per rupee per annum, then for 4 months: SI = 10 × 3 × (1/3) / 100 = 0.10. Neither matches Rs 1.20. However, if the question means the rate is 3 paise per rupee per month (annualized to 36%), then SI = 10 × 36 × (1/3) / 100 = Rs 1.20. This interpretation gives option A.

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