The capital required to earn a monthly interest of ₹1,500 at 12% per annum simple interest is:

Correct option is B

Given:

Monthly interest = ₹1,500

Rate of interest = 12% per annum (simple interest)

Formula Used:

Simple Interest = $$\frac{P \times R \times T}{100}$$​

Where:

P = Principal (capital)

R = Rate of interest (per annum)

T = Time in years

Solution:

Annual interest needed: Monthly interest = ₹1,500, so the annual interest is:

Annual Interest = $$1,500 \times 12 = ₹18,000$$​

For one year (T = 1 year) at 12% annual interest:

18,000 = $$\frac{P \times 12 \times 1}{100}$$​

18,000 = $$\frac{12P}{100}$$​

1,800,000 = 12P

P =$$\frac{1,800,000}{12} = 150,000$$​

The required capital (principal) is ₹1.5 lakhs

Alternate Method:

​$$\frac{1500}{1\%}\times 100\%$$ = 1.5 lakhs​