Question 60

If the simple interest on Rs. 1 for 1 month is 1 paisa, then the rate percent per annum will be

Solution

Principal amount (P) = Rs. 1

Time period (t) = 1 month = $$\frac{1}{12}$$ years

Simple interest = 1 paisa = Rs. $$\frac{1}{100}$$

Let $$r$$ be the rate of interest

=> S.I. = $$\frac{P \times r \times t}{100}$$

=> $$\frac{1 \times r \times \frac{1}{12}}{100}=\frac{1}{100}$$

=> $$r \times \frac{1}{12}=1$$

=> $$r=12\%$$

=> Ans - (C)

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