Multiple choice

A sum of Rs 400 amount to Rs 480 in 4 years at simple interest. What will it amount to if the rate of interest is increased by 2%?

  1. Rs 484

  2. Rs 360

  3. Rs 512

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

First calculate the original rate: Interest = 80, so Rate = (80*100)/(400*4) = 5%. With rate increased by 2%, new rate is 7%. New interest = (400*7*4)/100 = 112, so amount = 400 + 112 = 512.

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