Multiple choice

Due to reduction of interest rate from 8% to 7.5% by bank, one man got Rs. 600 less as compared to early annual receipts. The amount deposited in the bank is _______________.

  1. Rs. $1, 00, 000$
  2. Rs. $1, 50, 000$
  3. Rs. $1, 20, 000$
  4. Rs. $2, 00, 000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the amount be P. 8% of P - 7.5% of P = 600. 0.5% of P = 600. P = 600 / 0.005 = 120,000.

AI explanation

The difference in annual interest is calculated by multiplying the principal by the difference in the interest rates, which is 8% minus 7.5%, or 0.5%. This relationship is expressed as 600 equals Principal times 0.5 divided by 100. Solving for the principal gives Principal equals 600 times 100 divided by 0.5, which calculates to Rs. 1,20,000.

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