Q.Due to the annual simple interest rate decreasing from \(4\%\) to \(3\frac{3}{4}\%\), a person's annual income decreases by ₹60. Find that person's principal amount.

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