A sum is invested at 10% annual rate of simple interest for 4 years. R

1.	A sum is invested at 10% annual rate of simple interest for 4 years. Rs. 355 is the increase in interest if the rate of interest is increased by 5% of the initial rate. What is the sum?1). Rs. 170002). Rs. 174503). Rs. 177504). Rs. 17550
Answer» $(SI = \FRAC{{P \TIMES R \times T}}{{100}})$ Where, SI – Simple Interest P – Principal R – rate T – time Given, sum is INVESTED at a certain annual rate of simple interest for 4 years. Rs. 355 is the increase in interest if the rate of interest is increased by 5% of initial rate. $(SI\; = \frac{{\;P\; \times \;R\; \times \;4}}{{100}}\; = \frac{{PR}}{{25}})$ Increased rate = R + 5% of R = 1.05R $(SI\; = \frac{{P\; \times \;1.05R\; \times \;4}}{{100}} = \frac{{1.05PR}}{{25}})$ Given, difference between the two INTERESTS is Rs. 355 $(\therefore \frac{{1.05PR}}{{25}} - \frac{{PR}}{{25}} = 355)$ R = 10% ⇒0.05 × P × 10 = 355 × 25 ⇒ P = Rs. 17750

A sum is invested at 10% annual rate of simple interest for 4 years. Rs. 355 is the increase in interest if the rate of interest is increased by 5% of the initial rate. What is the sum?1). Rs. 170002). Rs. 174503). Rs. 177504). Rs. 17550

Answer»

$(SI = \FRAC{{P \TIMES R \times T}}{{100}})$

Where, SI – Simple Interest

P – Principal

R – rate

T – time

Given, sum is INVESTED at a certain annual rate of simple interest for 4 years. Rs. 355 is the increase in interest if the rate of interest is increased by 5% of initial rate.

$(SI\; = \frac{{\;P\; \times \;R\; \times \;4}}{{100}}\; = \frac{{PR}}{{25}})$

Increased rate = R + 5% of R = 1.05R

$(SI\; = \frac{{P\; \times \;1.05R\; \times \;4}}{{100}} = \frac{{1.05PR}}{{25}})$

Given, difference between the two INTERESTS is Rs. 355

$(\therefore \frac{{1.05PR}}{{25}} - \frac{{PR}}{{25}} = 355)$

R = 10%

⇒0.05 × P × 10 = 355 × 25

⇒ P = Rs. 17750

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