# What Will It Amount ?

A sum of Rs 600 amounts to Rs 720 in 4 years. What will it amount to if the rate of simple interest is increased by 2%?

- Rs 724
- Rs 648
- Rs 768
- Rs 792

**Answer: (3) Rs.768**

**Explanation:-**

**Formula-**

**Simple Interest = P x R x T/100**

**Where, P – principal, R – rate & T – time.**

**Given-**

Principal =Rs.600, Amount = 720 & time = 4 years.

Simple Interest = Amount – Principal

= 720 – 600

= Rs.120

120 = 600 x R x 4/100

R = 120 x 100/600 x 4

R = 5%

Rate of simple interest increased by 2%

Then, rate = 5 + 2 = 7%

Simple Interest = 600 x 4 x 7 /100

= Rs.168

Then, Amount = 600 + 168 = Rs.768

Hence the answer is (3) Rs.768.