Multiple choice

A sum of Rs.400 amounts to Rs.441 in 2 years. What will it amount to if the rate of interest is increased by 5%? एक 400 रू. की धनराशि 2 वर्षो में 441 रू. हो जाती है तो धनराशि क्या होगी यदि ब्याज दर में 5% की वृद्धि हो जाये?

  1. Rs.484

  2. Rs.504

  3. Rs.512

  4. Rs.560

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Rs. 400 grows to Rs. 441 in 2 years, so the growth factor is 441/400 = 1.10. This means 10% total growth over 2 years, giving 5% simple interest annually. If rate increases by 5% to 10%, the amount after 2 years would be 400 × 1.20 = 480, or using compound: 400 × (1.10)² = 400 × 1.21 = 484. The answer suggests compound interest calculation.