Multiple choice

What is the difference in SI if a sum of Rs. 4000 is borrowed by a person for 4 years and the rate of interest is increased from 4% to 5%?

  1. Rs. 180

  2. Rs. 160

  3. Rs. 140

  4. Rs. 120
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Difference in SI = P * T * (R2 - R1) / 100 = 4000 * 4 * (5 - 4) / 100 = 4000 * 4 * 1 / 100 = 160.

AI explanation

Using the Simple Interest formula, the difference in interest is directly proportional to the difference in the rate, so the difference equals Principal times Time times the change in Rate. The calculation is 4000 times 4 times (0.05 minus 0.04), which equals 4000 times 4 times 0.01. This gives a difference of Rs. 160.

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