Multiple choice

Arun has a certain sum deposited in a bank at 5% per annum. The bank increases the rate of interest from 5% to 6% =.After increase in rates,Arun deposits Rs.2000 more in his account.The annual interest received by him now is Rs.220 more than before.Find his original deposit.

  1. Rs.12,000

  2. Rs.13,250

  3. Rs.6,792

  4. Rs,.10,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let the original deposit be P. The increase in annual interest is 0.06(P+2000) - 0.05P = 220. Solving gives 0.01P = 100, so P = Rs. 10,000.

AI explanation

Let the original deposit be P; the increase in annual interest from the original deposit due to the rate hike is P times (6 percent minus 5 percent), which equals P times 0.01. The annual interest from the newly deposited Rs. 2000 at the new 6 percent rate is 2000 times 0.06, which equals Rs. 120. The total increase in interest is Rs. 220, so P times 0.01 plus 120 = 220. Solving for P gives P times 0.01 = 100, meaning the original deposit was Rs. 10,000.

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