Find the simple interest (in ₹) on ₹1,200 at an interest rate of 3% per month for 11 months.
- AOption (a)
₹53
- BOption (b)
₹396
- COption (c)
₹66
- DOption (d)
₹33
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Correct answer
₹396
Why this answer is correct
Shortcut Trick
Total interest percentage = 3% × 11 = 33%.
Directly calculate 33% of the principal to get the simple interest.
Simple Interest = 33% of 1200 = (33 × 1200) ÷ 100
Simple Interest = 33 × 12 = 396
∴ The correct answer is ₹396.
Alternate Method
Start
P = ₹1200
11 Months
SI = ?
Rate = 3% per month
Total Rate = 11 × 3% = 33%
Given:
Principal (P) = ₹1200
Rate of Interest (R) = 3% per month
Time (T) = 11 months
Formula Used:
Simple Interest (SI) = (P × R × T) ÷ 100
Calculation:
Since the rate is given per month and the time is given in months, we do not need to convert the time into years.
⇒ SI = (1200 × 3 × 11) ÷ 100
⇒ SI = 12 × 3 × 11
⇒ SI = 36 × 11
⇒ SI = 396
∴ The correct answer is ₹396.
Additional Information
Simple vs Compound Interest
Simple Interest is calculated only on the initial principal amount, making it uniform. Compound Interest is calculated on both the principal and the accumulated interest of previous periods.
Rate and Time Consistency
Always ensure the time unit matches the rate unit. If the rate is per annum (p.a.) but time is in months, convert time to years using T = (months ÷ 12).
Total Amount Formula
The total amount at the end of the time period is the sum of Principal and Interest: A = P + SI = P[1 + (R × T) ÷ 100].