Multiple choice

The interest on a certain sum is 5 paisa per rupee per month. What is the rate of interest per annum?

  1. 5%

  2. 12%

  3. 30%

  4. 60%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest is 5 paisa per rupee per month, which is 5% per month. Annual rate = 5% * 12 = 60%.

AI explanation

An interest of 5 paisa per rupee per month equals 5/100 of the principal each month, which is a 5% monthly rate. Multiplying this by the twelve months in a year gives the annual rate: 5% * 12 = 60%.

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