Question

A money lender finds that due to reducing the interest rate decrease from $8\%$ to $7\frac{3}{4}\%$, his yearly income diminishes by Rs. 61.50. His capital is

• A. Rs. 22400
• B. Rs. 23800
• C. Rs. 24600
• D. Rs. 26000

Answer 1

The correct option is C Rs. 24600

Difference in rate$=(8-7\frac{3}{4})\%=\frac{1}{4}\%$

Let the capital be rate Rs.$x$

$\therefore \frac{1}{4}\%$ of $x=61.50$

$\therefore x=61.50\times 100\times 4$

Rs$=24600$