Multiple choice

Rs. 1200 becomes Rs. 1500 in 2 years at a certain rate of simple interest. If the rate of interest is increased by 3%, what amount will Rs. 1200 become in 2 years?

  1. Rs. 1558

  2. Rs. 1598

  3. Rs. 1564

  4. Rs. 1572

  5. Rs. 1590
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SI = P×R×T/100. 1500-1200 = 300 = 1200×R×2/100. So R = (300×100)/(1200×2) = 12.5%. New rate = 12.5+3 = 15.5%. New SI = 1200×15.5×2/100 = 372. New amount = 1200+372 = 1572, which is option D.

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