Question

What capital will earn a monthly interest of ₹20 at 6 paise per rupee per year simple interest?​

Answer 1

Answer:

Rs 4000

Step-by-step explanation:

Since it is given a monthly interest of Rs 20

So, we will be converting it ino yearly interest.

∴ The yearly interest will be $Rs 20  \times 12$

= Rs 240.

Since the rate of the interest is given as 6 paise per rupee per year

That means it is 6% of the given amount.

And the time period is given for 1 year

So, applying the formula for calculating interest.

$I = \frac{priciple \times rate \times time}{100}$

$240 = \frac{p \times 6 \times 1}{100}$

$p = 40 \times 100$

p = 4000

∴ The total capital will be Rs 4000