Multiple choice

Find out the capital required to earn a monthly interest of Rs. 600 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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Monthly interest = 600, so annual interest = 7200. Simple interest formula: 7200 = (P * 6 * 1) / 100. P = 720000 / 6 = 120,000.

AI explanation

The annual interest is calculated by multiplying the monthly interest by twelve, giving Rs. 600 times 12, which equals Rs. 7200. Using the simple interest formula for one year, 7200 = P(6/100)(1), which gives P = 7200 / 0.06. Therefore, the required capital is Rs. 1,20,000.

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