Knowee
Questions
Features
Study Tools

The 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.?

Question

The 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.?

🧐 Not the exact question you are looking for?Go ask a question

Solution

To find the additional interest in one year on the same deposit at 5% p.a., we can follow these steps:

Step 1: Calculate the principal amount of the deposit. To find the principal amount, we can use the formula: Interest = (Principal * Rate * Time) / 100

Given that the interest on the deposit at 4.5% p.a. is Rs.202.50 in one year, and the rate is 4.5% p.a., we can rearrange the formula to find the principal amount: Principal = (Interest * 100) / (Rate * Time) Principal = (202.50 * 100) / (4.5 * 1) Principal = 4500 / 4.5 Principal = Rs.1000

So, the principal amount of the deposit is Rs.1000.

Step 2: Calculate the additional interest at 5% p.a. To find the additional interest, we can use the same formula: Interest = (Principal * Rate * Time) / 100

Given that the rate is now 5% p.a., and the principal amount is Rs.1000, we can calculate the additional interest: Additional Interest = (Principal * Rate * Time) / 100 Additional Interest = (1000 * 5 * 1) / 100 Additional Interest = 500 / 100 Additional Interest = Rs.5

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

This problem has been solved

Similar Questions

How much money should be deposited in a bank for half a year at an interest rate of 4% p.a. in order to gain $5 000 simple interest?

In what time will Rs.1,250, at 8% per annum, produce the same interest as Rs.2,000 does in 5 years at 0.5% simple interest?

Rs.1500 is invested at 10% S.I. and interest is added to the Principal after every 5 years. In how many years it amounts to Rs.2500 ?

Aman invested Rs 25,000 in a fixed deposit with a simple interest rate of 3.75%. How much interest will he earn after 4 years?Options3250395037504150

If you invest $76 000 into a term deposit that offers a fixed interest rate of 5.6% p.a. for a period of 5 years, how much simple interest will be earned?

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.