Correct option is B
Given:
- Original interest rate = 8% per annum
- New interest rate = 7.75% per annum
- Annual income decreased by = ₹61.50
Formula Used:
- Simple Interest Formula:
Interest =
- Since time is 1 year and decrease in income is due to rate decrease:
Decrease in income =
Solution:
- Difference in Rate = 8% - 7.75% = 0.25%
- Let Principal = P
=> P = ₹24,600
The principal amount is ₹24,600.