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A sum of Rs. 400 amounts to Rs. 480 in 4 years. What will it amount to if the rate of interest is increased by 2%?1. Rs.5122. Rs.5203. Rs.4844. Rs.560 |
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Answer» Correct Answer - Option 1 : Rs.512 Given Principle = 400 Amount = 480 Time = 4 years Formula used: SI = (P × R × T) / 100 Calculation: SI = Amount - Principal ⇒ 480 - 400 ⇒ Rs.80 SI for 1 year = 80/4 ⇒ Rs.20 ⇒ Rate = (SI × 100)/ P × T ⇒ Rate = (20 × 100)/ 400 × 1 ⇒ Rate = 5% ∴ New rate = 5% + 2% = 7% ⇒ SI = (400 × 7% × 4)/100 ⇒ SI = Rs.112 Amount = Principle + Simple interest ⇒ 400 + 112 ⇒ Rs.512 |
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