Question

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

• A. Rs. 648
• B. Rs 768
• C. Rs. 726
• D. Rs. 792

Answer 1

The correct option is B Rs 768

P = Rs. 600 A = Rs. 720
T = 4 years, R = ?

$R=\frac{SI\times 100}{P\times T}=\frac{120\times 100}{600\times 4}=5\%$
at 7% Rate

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

A = 600 + 168 = 768