If annual rate of simple interest increases from 10% to 5%, a man's yearly income decreases by Rs.4000.His principal in(Rs)
Question
If annual rate of simple interest increases from 10% to 5%, a man's yearly income decreases by Rs.4000. His principal in (Rs)
Solution
The problem is about simple interest which is calculated using the formula:
Interest = Principal * Rate * Time
In this case, the time is 1 year and the rate of interest changes from 10% to 5%. The difference in interest is given as Rs. 4000. We can set up the equation as follows:
Principal * 10% * 1 - Principal * 5% * 1 = 4000 0.10 * Principal - 0.05 * Principal = 4000 0.05 * Principal = 4000
Now, we can solve for the Principal:
Principal = 4000 / 0.05 = Rs. 80000
So, the man's principal is Rs. 80000.
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