Select the correct answerThe interest on a certain deposit at 4.5% p.a. is Rs. 202.50 in one year. How much will the additional interest in one year be on the same deposit at 5% p.a.?OptionsRs.25Rs.22.50Rs.30.25Rs.52.75
Question
Select the correct answerThe interest on a certain deposit at 4.5% p.a. is Rs. 202.50 in one year. How much will the additional interest in one year be on the same deposit at 5% p.a.?OptionsRs.25Rs.22.50Rs.30.25Rs.52.75
Solution
To solve this problem, we first need to find out the principal amount. We know that the interest for one year at a rate of 4.5% is Rs. 202.50.
The formula to calculate interest is:
Interest = Principal * Rate * Time
So, we can rearrange the formula to find the principal:
Principal = Interest / (Rate * Time)
Substituting the given values:
Principal = 202.50 / (4.5/100 * 1) = Rs. 4500
Now, we need to find out how much the interest would be at a rate of 5%.
Interest = Principal * Rate * Time
Interest = 4500 * 5/100 * 1 = Rs. 225
The additional interest at 5% would be Rs. 225 - Rs. 202.50 = Rs. 22.50
So, the correct answer is Rs.22.50.
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