a sum required to earn a monthly income of 1200 at 18% per annum then SI?
Since the period of time is not mentioned, it will be assumed that it is a perpetual annuity, with initial sum S generating interest of $1200 per month forever.
18% APR = 1.5% per month.
Therefore
S*0.015=1200, or
S=1200/0.015=80000
To calculate the sum required to earn a monthly income of 1200 at 18% per annum, we need to use the formula for Simple Interest (SI):
SI = (P * R * T) / 100
Where:
SI = Simple Interest
P = Principal (sum required)
R = Rate of Interest (in this case, 18% per annum)
T = Time (in this case, for a month)
First, let's convert the annual interest rate to a monthly rate. Since there are 12 months in a year, we divide the annual rate by 12:
Monthly Interest Rate = Annual Interest Rate / 12
= 18% / 12
= 1.5%
Next, we need to convert the monthly income of 1200 into an annual income:
Annual Income = Monthly Income * 12
= 1200 * 12
= 14400
Now, we can rearrange the formula to solve for the principal (sum required):
P = (SI * 100) / (R * T)
P = (14400 * 100) / (1.5 * 1)
Plugging in the values, we get:
P = 960,000
Therefore, the sum required to earn a monthly income of 1200 at 18% per annum is 960,000.
SI?
https://en.wikipedia.org/wiki/Si