Question

A moneylender's income decreased by ₹60 when the rate of interest dropped from 8% p.a to 31/4 p.a. What was his principal ?

Answer 1

let the principal be Rs x

income=x*8*1/100=8x/2

New income=x*31/481/100=31x/400

8x/100-31x/400=Rs 60

x=60*100=Rs 6000

Answer 2

Dear Student,

◆ Answer -

P = Rs 24000

● Explanation -

Let P be the principal moneylender had.

Initial income is given by -

Initial income = P × (100+r)/100

Initial income = P × (100+8)/100

Initial income = P × 108/100 ...(1)

Final income is given by -

Final income = P × (100+r)/100

Final income = P × (100+7.75)/100

Final income = P × 107.75/100 ...(2)

Difference between two incomes is -

Initial income - Final income = P × 108/100 - P × 107.75/100

60 = P (108-107.75)/100

60 × 100 = P × 0.25

P = 6000 / 0.25

P = Rs 24000

Hence, the principal is Rs. 24000.

Thanks dear. Hope this helps you...