Simple Interest-10th grade-4

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Craig finds that a fall of interest from 4% to 3 ¾% per annum diminishes
his yearly income by $60. What is his capital?

Solution: (4 – 3 ¾) % = ¼ %

By the problem, yearly income diminishes by $ ¼ when principal = $100

So, yearly income diminishes by $1 when principal = $(100 * 4)

So, yearly income diminishes by $ 60 when principal = $(100 * 4 * 60)

= $24000

So, Craig’s capital = $24000