Question

Rs. $1200$ amounts to Rs. $1632$ in $4$ years at a certain rate of simple interest. If the rate of interest is increased by $1\%$, it would amount to how much?

• A. Rs. $1635$
• B. Rs. $1644$
• C. Rs. $1670$
• D. Rs. $1680$

Answer 1

The correct option is D Rs. $1680$

Given, $A=$ Rs. $1632$

$P=$ Rs. $1200$

So, $\text{SI}=$ Rs. $1632-1200=$ Rs. $432$

$R=\frac{\text{SI}\times 100}{P\times T}$

$R=\frac{432\times 100}{1200\times 4}=9$ $\%$

If $R$ became $10\%$, $\text{SI}=\frac{1200\times 10\times 4}{100}=480$.

Then the new amount would be Rs. $1680$.