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

Answer: (A)

Rs. $1,00,000$

Let the investment be Rs. x. Then
$x\times \frac{41}{8}\times \frac{1}{100}-x\frac{39}{8}\times \frac{1}{100}=250$
or $2x=200000$
or $x=100000$