Simple Interest Practice Test 4

Question : 5 of 26

Marks: +1, -0

If the annual rate of simple interest increases from 10% to 12½%, a person's yearly income increases by Rs. 1250. What is his principal?

Solution:

Let principal = Rs. x; then,

{x×25×1}/{100×2}-{x×10×1}/100=1250

⇒x/8-x/10=1250

∴x=1250×40=50,000

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