A person's annual income decreases by ₹60 when the rate of interest drops from 4% to \(3\frac{3}{4}\)% (i.e., 3.75%). Find the principal amount.

Q.A person's annual income decreases by ₹60 when the rate of interest drops from 4% to \(3\frac{3}{4}\)% (i.e., 3.75%). Find the principal amount.

Let the principal amount be \(x\) rupees. The rate of interest decreases by (4% − \(3\frac{3}{4}\)%) = \(\frac{1}{4}\)% \(\therefore\) According to the question, \(\frac{x \times 1 \times \frac{1}{4}}{100} = 60\) i.e., \(x = 60 \times 100 \times 4 = 24000\) \(\therefore\) The principal amount is ₹24,000.