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.?

To solve this problem, we first need to find out the principal amount (the initial deposit) using the given interest rate and interest amount.

Step 1: Calculate the principal amount We know that Interest = Principal x Rate x Time So, Principal = Interest / (Rate x Time) Here, Interest = Rs. 202.50, Rate = 4.5% per annum (or 0.045 when expressed as a decimal), and Time = 1 year. So, Principal = 202.50 / (0.045 x 1) = Rs. 4500

Step 2: Calculate the additional interest at 5% per annum Now we need to find out how much interest we would earn with the same principal at a 5% interest rate. Interest = Principal x Rate x Time Interest = 4500 x 0.05 x 1 = Rs. 225

Step 3: Find the additional interest The additional interest is the difference between the interest at 5% and the interest at 4.5%. Additional Interest = Interest at 5% - Interest at 4.5% Additional Interest = Rs. 225 - Rs. 202.50 = Rs. 22.50

So, the additional interest in one year on the same deposit at 5% p.a. would be Rs. 22.50.