Question

A sum of Rs. $600$ amount to Rs. $720$ in $4$ year. What will be its amount if the rate of interest is increased by $2\%$?

• A. Rs. $724$
• B. Rs. $648$
• C. Rs. $768$
• D. Rs. $792$

Answer 1

Answer: (C)

Rs. $768$

Given:

$P=Rs.600$

$SI=720-600=Rs.120$

$T=4years$.

Hence,

$R=\frac{SI\times 100}{PT}=\frac{120\times 100}{600\times 4}=5\%$

Now rate is increased by $2\%$.

So new rate$=7\%$

$SI=\frac{600\times 4\times 7}{100}=Rs.168$

Hence new amount$=168+600=Rs.768$