Multiple choice

Under simple interest, due to the fall in the interest rate by 0.5 percentage point my yearly income from savings come down by 884. Find the savings.

  1. 80400

  2. 112000

  3. 1768000

  4. 2214000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the savings be S. The decrease in interest is 0.5% of S = 884. (0.5 / 100) * S = 884. S = 884 * 200 = 176800.

AI explanation

Using the simple interest formula for one year, Interest = Principal multiplied by Rate, the drop in interest is Principal multiplied by 0.005 = 884. Solving for the principal gives 884 / 0.005, which equals 1768000.

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