Find the sum required to earn monthly interest of Rs. 350 at 7% per annum at simple interest.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 60,000.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
⇒ 350 = (P × 7 × 1)/100
⇒ 7P = 35000
⇒ P = 5000 [monthly]
Yearly sum = 5000 × 12 = Rs.60000