Question

Raj deposits $20000 in the bank that pays simple interest at the rate of 2.75% at anuum. If the interest rate decrease to x%. He will receive $50 less every year. Find the value of x?

Answer 1

The easy way: $50 = 0.25% of 20,000
So, his interest rate was 2.75 - 0.25 = 2.5%

Or, algebraically,
20000(1.0275 - (1+x/100)) = 50
x = 2.5

Answer 2

Can you tell the formula