Question

Raj deposits $20000 in a bank that pays simple interest at a rate of 2.75% per annum. If the interest rate decreases to x% per annum, he will receive $50 less every year. Find the value of x

Answer 1

Answer:

20000 deposited amount

2.75 per annul simple interest

intrest he will get after 1 year = 20000 × 2.75/ 100 = 550 = 20550

find x = 550- 50 + 20000

X = 0.25%

checking = 20000× (2.75-0.25)/100

20000×2.50/100 = 20500

20550 - 20500 = 50

i don't know how to explain I calculated it mentally

Answer 2

Answer:

2.5% is the answer

Step-by-step explanation:

$20000 and 2.75% interest rate

so he get $550 in that

now

it is mentioned in question that he get $50 less every year due to change in interest rate

so he get $500 per annum

so by indirect relation

if get $550-------- on 2.75%

then get $ 500------- on X %i.e changed interest rate

so we have.........cross multiply

{$500×2.75%}/550

we get 2.5%