A moneylender finds that due to the fall in the annual rate of interest from 18% to 15%, his yearly income diminishes by Rs. 750. His capital is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 25,000.
Let capital = P
Income reduction = 18% of P - 15% of P = 3% of P
0.03P = 750
⇒ P = 750/0.03 = 25000