Question

Rs. $300$ amounts to Rs. $360$ in $4$ years. If the rate of interest is increased by $1\%$, then in the same time the amount will be

• A. Rs. $304$
• B. Rs. $372$
• C. Rs. $312$
• D. Rs. $364$

Answer 1

Answer: (B)

Rs. $372$

Principal $=Rs.300$
Time $=4$ years
Amount $=Rs.360$
Interest $=Rs.360-300=Rs.60$
Now, $Interest=\frac{Principal\times Rate\times Time}{100}$
$60=\frac{300\times R\times 4}{100}$
$R=\frac{60\times 100}{300\times 4}$
$R=5\%$
New rate $5+1$ = $6\%$
$Interest=\frac{Principal\times Rate\times Time}{100}$
$Interest=\frac{300\times 6\times 4}{100}$
$Interest=72$
Thus, new amount $=300+72=Rs.372$