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
1. Break Down the Problem
To find the additional interest for one year at 5% p.a. compared to 4.5% p.a., we need to:
- Determine the principal amount based on the interest earned at 4.5%.
- Calculate the interest at 5% on the same principal.
- Find the difference between the two interest amounts.
2. Relevant Concepts
- Formula for calculating interest:
3. Analysis and Detail
-
Calculate Principal from 4.5% Interest:
- Given interest and rate :
- Rearranging to find the principal:
-
Calculate Interest at 5%:
- Use the principal identified above:
-
Calculate Additional Interest:
- Additional interest at 5% compared to 4.5%:
4. Verify and Summarize
- The principal is calculated correctly as Rs. 4500.
- The 5% interest on this principal is Rs. 225.
- The additional interest earned when switching from 4.5% to 5% is Rs. 22.50.
Final Answer
The additional interest in one year at 5% p.a. will be Rs. 22.50.
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