Question

If the annual rate of simple interest increases from 10% to 12.5% , a man's yearly income increases by 1250. find his principal.

Answer 1

By increase in yearly income by 1250, it means to say that the man will receive 1250 more interest due to increase in rate of interest.

1250 = Change in Simple Interest due to change in Rate of interest

SI before = PRT/100

SI before = P(10)(1) / 100 = P/10

SI after = PRT/100

SI after = P(12.5)(1) / 100 = 1.25P / 10

Change in Simple Interest = 1.25P / 10 - P / 10 = 0.25P / 10

So, 0.25P / 10 = 1250

P = 12500/0.25

P = 50000

Answer 2

Answer:

RS 50000

Step-by-step explanation:

(R2-R1) %= x

25/2-10%=RS 1250

5/2%= RS 1250

Let P= 100 %

(1250*100)/(5/2)= RS 50000