If the interest on money be 1 paisa per rupee per month, what is the rate per cent per annum?
- A12%
- B15%
- C10%
- D1%
Solution & Step-by-step Explanation
Given:
Interest = 1 paisa per rupee per month.
We know that:
1 rupee=100 paise
So, the interest on 100 paise for 1 month=1 paisa.
The rate of interest per month is:
Rate per month=(
100
1
×100)%=1%
Since there are 12 months in a year, the rate per cent per annum is:
Rate per annum=1%×12=12%
Interest = 1 paisa per rupee per month.
We know that:
1 rupee=100 paise
So, the interest on 100 paise for 1 month=1 paisa.
The rate of interest per month is:
Rate per month=(
100
1
×100)%=1%
Since there are 12 months in a year, the rate per cent per annum is:
Rate per annum=1%×12=12%