Question

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

• A. Rs. 768
• B. Rs. 794
• C. Rs. 818
• D. Rs. 865

Answer 1

The correct option is A Rs. 768

Here, $S.I=720-600=120$
Also, $S.I=\frac{PTR}{100}$
Thus, $120=\frac{600\times R\times 4}{100}$
Solving, $R=5\%$
Now, increasing the interest rate by
$2\%$, New $R=7\%$
Amount $=P+S.I=600+\frac{600\times 7\times 4}{100}$
$=Rs.768$