Mathematics for FinanceMTP Dec 23 Series IQuestion 1390 of 512
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The sum required to earn a monthly interest of Rs.1200\displaystyle 1200 at 18%\displaystyle 18\% P.a Simple Interest is -

Options

ARs.80,000\displaystyle 80,000
BRs.90,000\displaystyle 90,000
CRs.80,000\displaystyle 80,000
DNone of these
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Correct Answer

✅ Option c — Rs.80,000\displaystyle 80,000

All Options:

  • ARs.80,000\displaystyle 80,000
  • BRs.90,000\displaystyle 90,000
  • CRs.80,000\displaystyle 80,000
  • DNone of these

Detailed Solution & Explanation

**Derivation of Principal Amount** Given: - Monthly simple interest = Rs. 1,200\displaystyle \text{Rs. }1,200 - Rate of Interest (R\displaystyle R) = 18%\displaystyle 18\% per annum - Time (T\displaystyle T) = 1\displaystyle 1 month = 112\displaystyle \frac{1}{12} year **Step 1: Set up the Simple Interest formula** SI=P×R×T100SI = \frac{P \times R \times T}{100} 1200=P×18×1121001200 = \frac{P \times 18 \times \frac{1}{12}}{100} 1200=1.5P1001200 = \frac{1.5 P}{100} 1200=0.015P1200 = 0.015 P **Step 2: Solve for P\displaystyle P** P=12000.015=Rs. 80,000P = \frac{1200}{0.015} = \text{Rs. }80,000 *(Note: Both Option A and Option C are listed as Rs. 80,000. Option C is marked correct in the key.)* Hence, **Option C** is the correct answer.

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