Answer: $20,000
Step-by-step explanation:
Given
Interest decreases from 3.75% to 3.5% in a year
This change in the rate of interest brings a yield of 50$
Earlier interest was
[tex]S.I_e=\dfrac{P\times 3.75\times 1}{100}[/tex]
Now, interest is
[tex]S.I._n=\dfrac{P\times 3.5\times 1}{100}[/tex]
change gives 50$ i.e.
[tex]\Rightarrow \dfrac{P\times 3.75\times 1}{100}-\dfrac{P\times 3.5\times 1}{100}=50\\\\\Rightarrow \dfrac{P\times (3.75-3.5)\times 1}{100}=50\\\\\Rightarrow P=\dfrac{50\times 100}{0.25}=\$20,000[/tex]
