Question

A person finds that an increase in the rate of interest from $4\frac{7}{8}$% to $5\frac{1}{8}$% per annum increases his yearly income by Rs 30. His capital in rupees is

• A. 15,000
• B. 14,000
• C. 13,000
• D. 12,000

Answer 1

The correct option is D 12,000

increase in rate of interest

$4\frac{7}{8}=\frac{39}{8}$

$5\frac{1}{8}=\frac{41}{8}$

$\frac{41}{8}-\frac{39}{8}=\frac{2}{8}$

$\frac{2}{8}$% of income is Rs30 of the capital

$1$% of income is $\frac{8}{2}\times 30$ of capital

$100$% of income will be$\frac{8}{2}\times 30\times 100=12000$

His capital in rupees is 12000