Question

Interest on $₹12000$ for $1$ month at the rate of $10\%$ per annum is

• A. $₹1200$
• B. $₹600$
• C. $₹100$
• D. $₹12100$

Answer 1

The correct option is C

$₹100$

Explanation for correct option:

Step 1: List the known values

Given,

Principle amount $p=₹12000$

Time $t=1$ month

$=\frac{1}{12}$ year [1 year = 12 months]

Rate of interest $r=10\%$ per annum

Step 2: Calculate the Simple Interest

We know that the simple interest is given as,

$SI=\frac{P\times r\times t}{100}$

$=\frac{12000\times 10\times 1}{12\times 100}$

$=₹100$

Hence, option $C$ is the correct answer.