Question

Rs 300 amounts to Rs 360 in 4 years at simple interest. If the rate of interest is increased by 1%, it would amount to

• A. Rs 364
• B. Rs 368
• C. Rs 372
• D. Rs 384

Answer 1

The correct option is C Rs 372

Simple Interest is (360-300)=Rs60

by using the formula of simple interest we can find the rate percant

$SimpleInterest=\frac{P\times T\times R}{100}$

$60=\frac{300\times 4\times R}{100}$

$60=12R$

$R=5$

If the rate of interest is increased by 1% rate will be 6%

Amount will be=Principal+ Simple interest

Simple interest will be=$=\frac{300\times 4\times 6}{100}=72$

Amount will be=(300+72)=Rs372