Question

The monthly S. I. of Rs. 1200 is Rs. 8,then what will be the annual rate of interest?

Answer 1

Given:-

• Principal = 1200 rupees
• Time = 1 year
• Montly S.I = 8 rupees

To Find:-

• Rate =?

Solution:-

Given,

• P = 1200 rupees
• S. I = 8 rupees
• Annual S. I = 12 * 8 = 96 rupees
• T = 1 year

As we know

${\boxed{\red{\sf{rate = \frac{simple \: interest \times 100}{principal \times time}}}}}$

Now put the values

$\sf \: rate = \frac{96 \times 100}{1200 \times 1} \\ \\ \sf \: rate = 8 \:percent$

Hence,the rate of interest is 8%.