Find the capital which gives Rs. 1 as interest per month at 5 % rate of interest per annum

Question : Find the capital which gives ₹ 1 as interest per month at 5 % rate of interest per annum.

solution : Interest ( I ) = ₹ 1

Time ( T ) = 1 month = 1 / 12 years

Rate ( R ) = 5 %

Principal ( P ) = I × 100 / ( T × R )

= 1 × 100 / { ( 1 /2 ) × 5 }

= ₹ { 12 / ( 1 × 20 ) }

= ₹ 240