Question

Find out the capital required to earn a
monthly interest of Rs. 210 at 7% simple
interest.
​

Answer 1

Given:

• Simple Interest = 210 Rs Monthly

• Rate of interest = 7%

To find:

• Principal amount

Solution:

• Interest is 210 rs monthly so annual interest = 210* 12 = 2520 rs
• Simple interest = Principal amount * Period * Rate / 100
• 2520 is interest for 1 year.
• Period = 1 year ; Rate = 7 % ; Interest = 2520 rs
• 2520 = P * 1 * 7 / 100
• 252000/7 = Principal amount
• 36000 rs = Principal amount

Answer:

To earn an interest of 210 rs monthly at rate 7%, the principal amount should be 36000 rs.

Answer 2

Hence the principal amount is 36000 Rs.

Explanation:

We are given that:

• Interest Rate = 7 %
• Amount = 210 Rs

Solution:

Annual interest = 210 x 12 = 2520 Rs

Simple interest = Principal amount x Period x Rate / 100

Interest for 1 year = 2520 Rs

2520 = P * 1 * 7 / 100

252000/7 = Principal amount

Principal amount = 36000 Rs

Hence the principal amount is 36000 Rs.