Question

The sum required to earn a monthly interest of 1200 at 18% per annum simple interest is

Answer 1

Step-by-step explanation:

The formula of simple interest = PRT/100;

Here p is the principle amount, R is rate of interest and T is the time.

Let Time is 12 months = 1 year.

Yearly Simple interest = (1200*18*1)/100;

= 216;

Now converting this yearly Simple interest into monthly by dividing by 12;

216/12 = 18;