Question

If rate of interest reduces from 5% to 4%, a man gets Rs. 250 less as his yearly interest. What is the capital investment of the person?

Answer 1

Rupees 25000.
Let the capital investment be ₹ x.
Then 5x/100 - 4x/100 = 250
Or x/100 = 250
Or x = 25000

Answer 2

Solution:-

Let the capital investment be Rs. 'x'

Therefore, according to the question.
 
(x*5*1)100 - 250 = (x*4*1)/100
5x/100 - 250 = 4x/100
x/20 - 250 = x/25
(x - 5000)/20 = x/25
20x = 25x - 125000
20x - 25x = - 125000
- 5x = - 125000
x = 125000/5
x = 25000
So, the capital investment of the person is Rs. 25000.
Answer.