If the simple interset on Rs. 1 for 1 months is 1 paisa, then the rate per annum will be

Options

A. 0.1
B. 0.08
C. 0.12
D. 0.06

Answer

To find the rate of simple interest per annum when the simple interest on Rs. 1 for 1 month is 1 paisa, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the given values**:
- Principal (P) = Rs. 1
- Simple Interest (SI) for 1 month = 1 paisa

2. **Convert 1 paisa to rupees**:
- Since 1 rupee = 100 paisa, therefore:
\[ 1 \text{ paisa} = \frac{1}{100} \text{ rupees} = 0.01 \text{ rupees} \]

3. **Calculate the simple interest for 1 year**:
- Since there are 12 months in a year, the simple interest for 1 year (SI for 12 months) will be:
\[ \text{SI for 1 year} = 1 \text{ paisa} \times 12 = 12 \text{ paisa} \]
- Converting this to rupees:
\[ \text{SI for 1 year} = 12 \text{ paisa} = \frac{12}{100} \text{ rupees} = 0.12 \text{ rupees} \]

4. **Calculate the rate of interest per annum**:
- The formula for simple interest is:
\[ \text{SI} = \frac{P \times R \times T}{100} \]
- Where:
- SI = Simple Interest
- P = Principal
- R = Rate of interest per annum
- T = Time in years
- Rearranging the formula to find R:
\[ R = \frac{\text{SI} \times 100}{P \times T} \]
- Substituting the known values:
\[ R = \frac{0.12 \times 100}{1 \times 1} = 12 \]

5. **Conclusion**:
- The rate of interest per annum is **12%**.