11 Views

Question : If the annual rate of simple interest increases from $11\%$ to $17 \frac{1}{2} \%$, a person's yearly income increases by Rs. 1,071.20. The principal amount invested (in Rs.) is:

Option 1: 19,120

Option 2: 16,480

Option 3: 17,250

Option 4: 10,710


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 16,480


Solution : The increase in yearly income is due to the increase in interest rates.
Given that the increase in income is Rs. 1,071.20 and the increase in interest rate is $17\frac{1}{2}\% - 11\% = 6\frac{1}{2}\% = \frac{13}{2}\%$
Principal = $\frac{\text{Increase in income}}{\text{Increase in interest rate}}×100 = \frac{1071.20}{ \frac{13}{2}}×100$ = Rs. 16,480
Hence, the correct answer is 16,480.

Know More About

Related Questions

Amity Online MBA
Apply
Apply for an Online MBA from Amity Online.
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books