Q.If the interest rate increases by 2%, how much principal amount will result in an additional interest of 300 rupees over 5 years? (a) ₹ 2000 (b) ₹ 3000 (c) ₹ 4000 (d) ₹ 3600
Answer: B
Difference in interest = Principal \(\times\) Time \(\times\) Difference in interest rate
or, \( 300= \) Principal \(\times 5 \times \cfrac{2}{100}\)
or, Principal = \(\cfrac{300\times 100}{5\times 2}=3000\) rupees.
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