Question

Mr. Mittal 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. 250. His investment is

• A. Rs. 1,00,000
• B. Rs. 1,20,000
• C. Rs. 1,50,000
• D. Rs. 2,00,000

Answer 1

The correct option is A Rs. 1,00,000

Let the investment be Rs. $x$.

Then,
$(S.I.at\frac{41}{8}\%)-(S.I.at\frac{39}{8}\%)=280$
$x\times \frac{41}{8}\times \frac{1}{100}-x\frac{39}{8}\times \frac{1}{100}=250$
or $2x=200000$
or $x=100000$