Multiple choice

Suresh wishes to earn a monthly interest of Rs.600. The interest rate is 12 percent per annum but it is paid every month. He must invest -

  1. Rs.80,000

  2. Rs.60,000

  3. Rs.90,000

  4. Rs.1,20,000.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Monthly interest = 600. Annual interest = 600 * 12 = 7200. Interest rate = 12% per annum. Principal = (Interest * 100) / (Rate * Time) = (7200 * 100) / 12 = 60,000.

AI explanation

Using the principal formula Principal = Interest x 100 / Rate, we first find the monthly interest rate is 12 / 12 = 1 percent. Substituting the values gives Principal = 600 x 100 / 1, resulting in an investment of Rs. 60,000.

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