Multiple choice

The simple interest on a certain deposit at 4.5% per annum is Rs. 202.50 in one year. How much additional interest will be earned in one year on the same deposit at a rate of 5% per annum?

  1. Rs. 20.25

  2. Rs. 22.50

  3. Rs. 25

  4. Rs. 42.75

  5. Rs. 42.25
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest is proportional to the rate. If 4.5% yields Rs. 202.50, then 1% yields 202.50 / 4.5 = Rs. 45. The interest at 5% is 5 * 45 = Rs. 225, so the additional interest is 225 - 202.50 = Rs. 22.50.

AI explanation

Using the Simple Interest formula, the deposit principal equals 202.50 times 100 divided by the product of 4.5 and 1, which equals 4,500. At a new rate of 5 percent, the interest earned in one year is 4,500 times 5 divided by 100, yielding 225. The additional interest earned is the difference between the new and old interest, so 225 minus 202.50 equals 22.50.

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