Simple Interest – Find principal from annual interest requirement: At a simple interest rate of 12% per annum, what principal will earn Rs 6,000 interest per year?

Introduction / Context:
Under SI, yearly interest equals P * r. If the required yearly interest is known, we can directly solve for P.

Given Data / Assumptions:

• Annual SI desired = Rs 6000
• r = 12% = 0.12 per annum

Concept / Approach:
P = (Annual SI) / r.

Step-by-Step Solution:

Verification / Alternative check:

Why Other Options Are Wrong:

• Rs 7200 / 48543.69: numerically inconsistent.
• Rs 72000 / Rs 60000: give different annual interests than Rs 6000 at 12%.

Common Pitfalls:

• Treating the figure as total interest over multiple years instead of annual.

Final Answer:
Rs 50000.