Assume the person's principal is \(x\) rupees. The interest rate decreases by \((5.5\% - 4.5\%) = 1\%\) \(\therefore\) According to the question, \(\cfrac{x \times 1 \times 1}{100} = 250\) i.e., \(x = 250 \times 100 = 25000\) \(\therefore\) The person's principal amount is ₹25,000.