Word Problem 9
Problem 9: If a man finds that increase in interest rate from 4-7/8 to 5-1/8 percent per annum on his investment increases his income by Rs 25. What is his invested amount?
a) 10000 b) 12000 c) 15000 d) 20000
This is basically problem of simple interest.
But it is given that 1st Simple Interest ( SI)
And 2nd SI;
We take difference of both simple interests;
But this difference should be equal to increase in income i-e Difference = 25RS, so;
Keep ‘x’ on one side and shift remaining term to other side;
So invested amount was RS 10000