Answer: C
Let the person's principal amount be \(x\) rupees.
The interest rate increases by (5% - 4%) = \(1\)%
\(\therefore \) According to the question, \(\cfrac{x\times 1\times 1}{100}=1000\)
Or, \(x=1000\times 100=10000\)
\(\therefore\) The person's principal amount is ₹10,000.
Let the person's principal amount be \(x\) rupees.
The interest rate increases by (5% - 4%) = \(1\)%
\(\therefore \) According to the question, \(\cfrac{x\times 1\times 1}{100}=1000\)
Or, \(x=1000\times 100=10000\)
\(\therefore\) The person's principal amount is ₹10,000.