Find what will be the simple interest on the Principal Amount of Rs. 1000/- for 10 months at interest rate of 6% per annum

Question

Find what will be the simple interest on the Principal Amount of Rs. 1000/- for 10 months at interest rate of 6% per annum

1. A. Rs. 60/-
2. B. Rs. 30/-
3. C. Rs. 50/- (Correct answer)
4. D. Rs. 10/-

Correct Answer

Option C — Rs. 50/-

Detailed Solution & Explanation

The correct answer is Rs. 50/-.

Key Points

• Simple Interest is SI = (P × R × T) / 100.
• The time must be expressed in years: 10 months = 10/12 of a year.
• SI = (1000 × 6 × 10/12) / 100 = 60000/12 ÷ 100 = Rs. 50.

Additional Information

• A quicker route: one full year's interest on Rs. 1000 at 6% is Rs. 60, and 10 months is 5/6 of a year, so 60 × 5/6 = Rs. 50.
• Failing to convert months into years is the commonest error and would give Rs. 600 here.
• Compound interest differs: A = P(1 + R/100)ⁿ. For the same principal, rate and period, CI always exceeds SI beyond the first period.