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.?
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.
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