A moneylender finds that due to a fall in the rate of interest from 13% to 12 1/ 2% his yearly income diminishes by Rs. 104. His capital is?
Correct Answer: Rs. 20800
Explanation:
Let capital = Rs . P
Then, SI1 - SI2 = 104.
⇒ (P x 13 x 1)/100 - (P x 25/2 x 1) /100 = 104
⇒ 13P/100 - P/8 = 104
⇒ 26P -25P = (104 x 200)
⇒ P = 20800
∴ Capital = Rs. 20800
