Find the simple interest (in ₹) on ₹1,500 at 6% per month for 2 months.
- AOption (a)
15
- BOption (b)
180
- COption (c)
45
- DOption (d)
30
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Correct answer
180
Why this answer is correct
Shortcut Trick
Calculate the Total Percentage Interest: 6% per month × 2 months = 12%.
Simple Interest = 12% of ₹1,500.
Simple Interest = (12/100) × 1500 = 12 × 15 = 180.
∴ The correct answer is ₹180.
Alternate Method
Given:
Principal (P) = ₹1,500
Rate of Interest (R) = 6% per month
Time (T) = 2 months
Formula Used:
Simple Interest (SI) = (P × R × T) ÷ 100
Calculations:
⇒ SI = (1500 × 6 × 2) ÷ 100
⇒ SI = (1500 × 12) ÷ 100
⇒ SI = 15 × 12
⇒ SI = 180
∴ The correct answer is ₹180.
Additional Information
Consistency of Units
Ensure the Rate (R) and Time (T) are in the same time unit. If R is per annum, T must be in years. If R is per month, T must be in months.
Total Amount Formula
The total Amount (A) at the end of the period is the sum of the Principal and Simple Interest: A = P + SI.
Rate Conversion
To convert a monthly rate to an annual rate, multiply by 12. For example, 6% per month is equal to 6% × 12 = 72% per annum.
