Multiple choice

A sum of 600 amounts to Rs. 720 in 4 years at simple interest. What will it become in 4 years if the rate of interest is increased by 2%?

  1. Rs. 648

  2. Rs. 768

  3. Rs. 668

  4. Rs. 968

  5. NA
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest for 4 years is 720 - 600 = 120. Rate = (120 * 100) / (600 * 4) = 5%. New rate = 7%. New interest = (600 * 7 * 4) / 100 = 168. New amount = 600 + 168 = 768.

AI explanation

First, find the original rate by using the simple interest formula: Interest equals Principal multiplied by Rate multiplied by Time divided by 100. Substituting the values gives 120 equals (600 multiplied by R multiplied by 4) divided by 100, which results in an original rate of 5 percent. If the rate is increased by 2 percent, the new rate becomes 7 percent, and the new interest is (600 multiplied by 7 multiplied by 4) divided by 100, equaling 168. Adding this interest to the principal of 600 gives a total amount of Rs. 768.

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