Multiple choice

Find out the capital required to earn a monthly interest of $Rs. 500$ per month as $6$% simple interest.

  1. $Rs. 1,00,000$
  2. $Rs. 1,20,000$
  3. $Rs. 1,10,000$
  4. $Rs. 1,30,000$
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A Correct answer
Explanation

Monthly interest = 500, so annual interest = 6000. I = PRT/100. 6000 = (P * 6 * 1) / 100. P = 600000 / 6 = 100,000.

AI explanation

The yearly interest is Rs. 500 multiplied by 12 months, which equals Rs. 6000. Using the simple interest formula, the principal equals (Yearly Interest x 100) divided by (Rate x Time). Therefore, the required capital is (6000 x 100) divided by (6 x 1), which equals Rs. 1,00,000. The capital required is Rs. 1,00,000.

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