Multiple choice

Rs. $1200$ amounts to Rs. $1632$ in $4$ years at a certain rate of simple interest. If the rate of interest is increased by $1\%$, it would amount to how much?

  1. Rs. $1635$
  2. Rs. $1644$
  3. Rs. $1670$
  4. Rs. $1680$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest for 4 years is 1632 - 1200 = 432. The rate is (432 * 100) / (1200 * 4) = 9%. Increasing the rate by 1% makes it 10%, so the new interest is (1200 * 10 * 4) / 100 = 480. The new amount is 1200 + 480 = 1680.

AI explanation

An increase of 1% in the simple interest rate for 4 years means the total interest increases by 4% of the principal. The extra interest earned is 1% of Rs. 1200 for 4 years, calculated as (1200 x 1 x 4) divided by 100, which equals Rs. 48. Adding this to the original amount gives 1632 + 48 = Rs. 1680.

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