Question

5.
If Rs 1,600 amounts to Rs 2,100 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?​

Answer 1

Answer:

Rs 1600 amounts to Rs 2163.2 in 4 years at 8.8% rate of interest

Step-by-step explanation:

Given that Rs 1600 amounts to Rs 2100 in 4 years at certain rate of simple interest

Let rate of interest be $r\%$

We have

SI = Rs 2100 - 1600 = Rs 500

P = Rs 1600

T = 4 years

Simple interest is calculated as

$SI=\frac{P \times R \times T}{100}\\\\ 500 = \frac{1600 \times r \times 4}{100}\\\\r = \frac{500 \times 100}{1600 \times 4}\\\\r = 7.8$

Now, given that rate of interest is increased by $1\%$

New rate of interest, $r = 7.8 + 1 = 8.8\%$

Simple interest with new rate of interest is

$SI=\frac{P \times R \times T}{100}\\\\SI = \frac{1600 \times 8.8 \times 4}{100}\\\\ SI = 563.2$

Now, amount after 4 years with 8.8% rate of interest is calculated

$Amount= P +SI\\\\ Amount = Rs 1600 + Rs 563.2\\\\ Amount=Rs2163.2$

Hence, Rs 1600 amounts to Rs 2163.2 in 4 years at 8.8% rate of interest.