Question

bank reduces the interest rate from 12% p.a. to 10% p.a to expand its business. By how much is the yearly interest on Rs. 8,400 decreased?​

Answer 1

$168

Explanation:

yearly interest = principal x time x interest rate

interest when interest rate is 12% = 8400 x 0.12 = 1008

interest when interest rate is 10% = 8400 x 0.1 = 840

decrease in interest rate = 1008 - 840 = 168