The interest on a certain deposit at 4.5% p.a. is ₹135 in one year. How much will the additional interest in one year be on the same deposit at 5% p.a.?

Question

Question

This question was previously asked in

SSC CGL 2023 Tier-I Official Paper (Held On: 24 Jul 2023 Shift 3)

Answer 1

Given:

Initial R = 4.5 %

Initial interest = Rs. 135

New R = 5%

Formula used:

Simple Interest = (Principle × Rate per annum ×Time)/100

Calculation:

Let deposit = Rs. a

⇒ 135 = (a x 4.5 x 1)/100

⇒ a = 3000

Now,

Simple interest on 5% = (3000 x 5 x 1)/100

⇒ 150

Additional interest = 150 - 135 = Rs. 15

∴ Additional interest in one year = Rs. 15

Shortcut Trick If 4.5 = 135

⇒ 1 = 30

⇒ 5 = 5 x 30 = 150

Additional interest = 150 - 135 = Rs.15

∴ Additional interest in one year is 15.