Multiple choice

Rs. 300 amounts to Rs. 360 in 4 years. If the rate of interest is increased by 1% then in the same time the amount will be

  1. Rs. 304

  2. Rs. 372

  3. Rs. 312

  4. Rs. 364
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest = 360 - 300 = 60. Rate = 60 / (300 * 4) = 5%. New rate = 6%. New interest = 300 * 6 * 4 / 100 = 72. New amount = 300 + 72 = 372.

AI explanation

If the rate increases by 1 percent for 4 years, the extra simple interest equals 300 times 4 times 0.01, which is Rs. 12. Adding this extra interest to the original amount of Rs. 360 gives the new amount. The new amount is Rs. 372.

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