To determine the interest earned by the man on his ₹1200 deposit after 1 year at a 5% per annum simple interest rate, we can follow these steps:
1. Identify the principal amount (P): This is the initial amount deposited, which is ₹1200.
2. Determine the rate of interest (R): The rate of interest is given as 5% per annum.
3. Determine the time period (T): The time period for which the deposit is made is 1 year.
4. Formula for Simple Interest (SI): The formula to calculate simple interest is
[tex]\[ SI = P \times R \times T \][/tex]
5. Convert the rate of interest into decimal form:
[tex]\[ R = \frac{5}{100} = 0.05 \][/tex]
6. Insert the values into the formula:
[tex]\[ SI = 1200 \times 0.05 \times 1 \][/tex]
7. Calculate the interest earned:
[tex]\[ SI = 60 \][/tex]
Therefore, the interest earned by the man on maturity is ₹60.
From the options provided:
(a) 14790
(b) 390
(c) 4680
(d) 780
None of the options match the correct calculated interest of ₹60.
