Question

Choose the correct answer from the alternative given.
If the annual rate of simple interest increases from 10% to 12.5% . A mans yearly income increases by Rs. 1250. his principal (in rupees) is:

• A. 50,000
• B. 45,000
• C. 60,000
• D. 65,000

Answer 1

The correct option is A 50,000

Change in Rate of interest= $(\frac{25}{2}-10)\%=\frac{5}{2}\%$
According to the question, $\frac{5}{2}$% of principal = Rs. 1250
Hence, Principal = $\frac{1250\times 2\times 100}{5}$ = Rs. 50000