A money lender finds that due to fall in the annual rate of interest 8% to 734%, his yearly income diminishes by 61.50. His capital is?

The problem is about the change in interest rate and its effect on the yearly income of a money lender.

Step 1: Understand the problem The annual rate of interest has fallen from 8% to 7 3/4% (or 7.75%). This decrease in interest rate has caused the money lender's yearly income to decrease by 61.50. We need to find out the capital of the money lender.

Step 2: Set up the equation The difference in the interest rates is 8% - 7.75% = 0.25%. This 0.25% decrease in interest rate is equal to a decrease of 61.50 in the money lender's yearly income.

So, we can set up the equation as follows: 0.25/100 * Capital = 61.50

Step 3: Solve the equation To find the capital, we can rearrange the equation and solve for Capital: Capital = 61.50 / (0.25/100) = 24600

So, the money lender's capital is 24600.