Due to the annual simple interest rate decreasing from 4% to 3\(\frac{3}{4}\)%, Amal Babu's annual income reduces by ₹60. Determine Amal Babu's principal amount.

Q.Due to the annual simple interest rate decreasing from 4% to 3\(\frac{3}{4}\)%, Amal Babu's annual income reduces by ₹60. Determine Amal Babu's principal amount.

Let Amal Babu's principal amount be \(x\) rupees.
The reduction in interest rate is (4%-\(3\frac{3}{4}\)%)=\(\cfrac{1}{4}\)%
\(\therefore \) As per the question, \(\cfrac{x\times 1\times \cfrac{1}{4}}{100}=60\)
Or, \(x=60\times 100\times 4=24000\)

\(\therefore\) Amal Babu's principal amount is 24000 rupees.