Question

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

Answer 1

Dear Student,

Let say Capital = P Rs

Monthly Interest = Rs 20

Interest Rate = 6 paise per rupee per year

= 6 Paisa per 100 Paisa per Year

= 6 % per year

Time = 1 Month = 1/12 Years

Simple interest = P * R * T /100

=> 20 = P * 6 * (1/12) /100

=> 20 = P /200

=> P = 4000

Capital = Rs 4000

Regards