A moneylender finds that due to a fall in the rate of interest

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A moneylender finds that due to a fall in the rate of interest from 13% to 12¹/₂% his yearly income diminishes by Rs. 104. His capital is ?

1. Rs. 21400
2. Rs. 20800
3. Rs. 22300
4. Rs. 24000

Correct Option: B

Let capital = Rs . P
Then, SI₁ - SI₂ = 104.
⇒ (P x 13 x 1)/100 - (P x 25/2 x 1) /100 = 104
⇒ 13P/100 - P/8 = 104
⇒ 26P -25P = (104 x 200)
⇒ P = 20800
∴ Capital = Rs. 20800