Question

You tell your dad that you want ₹800 as pocket-money every month. He can deposit some money in the bank such that the interest he gets will be equal to the money you need. His bank offers him an interest rate of 6%, percent per annum. How much money should he deposit in the bank?

Answer 1

160,000 because you need to first multiply 800 by 12 since it is from a year (annum) to months you should get 9,600 then rather than multiplying by 0.06 to find 6% we divide to find what it is 6% of.