If the annual rate of simple interest increases from 11% to $17 \frac{1}{2}\%$ a person’s yearly income increases by ₹1,071.20. The principal amount invested (in ₹) is:
Answer & explanation
Correct answer: option 2
Let Principal (P) = 100%
Simple Interest increase from 11% to 17.5%
ATQ,
17.5% - 11% = 1071.20
6.5% = 1071.20
1% = \(\frac{1071.20}{6.5}\)
= 164.8
100% = 164.8×100
= Rs 16480