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

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.

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