Multiple choice

The sum required to earn a monthly interest of $Rs. 1,200$ at $18$% p.a. simple interest is ___________.

  1. $Rs. 50,000$
  2. $Rs. 60,000$
  3. $Rs. 80,000$

  4. None of above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Monthly interest = 1200, so annual interest = 1200 * 12 = 14400. Simple interest formula: I = PRT/100. 14400 = P * 18 * 1 / 100. P = 14400 * 100 / 18 = 80000.

AI explanation

Using the simple interest formula where the principal equals Interest times 100 divided by Rate times Time, we substitute the monthly interest to find the yearly interest as 1,200 times 12, which equals Rs. 14,400. The required principal sum is 14,400 times 100 divided by 18 times 1, which equals Rs. 80,000.

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