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%?

  1. Rs 724
  2.  Rs 648
  3.  Rs 768
  4.  Rs 792
Gopal Default Asked on 24th July 2015 in Maths.
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1 Answer(s)

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.

Anurag Mishra Professor Answered on 24th July 2015.
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