The simple interest on a certain deposit at 5.5% per annum is ₹264 in one year. How much additional interest will be earned in one year on the same deposit at 6.5% per annum?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e ₹48.
Simple Interest = (Principal × Rate × Time) / 100
264 = (P × 5.5 × 1) / 100
P = (264 × 100) / 5.5 = ₹4800
Interest at 6.5% = (4800 × 6.5 × 1) / 100 = ₹312
Additional Interest = 312 - 264 = ₹48