Question

A sum of Rs 600 amounts to Rs 735 in 5 years at a certain rate of interests. if the rate of interest is increased by 2% what will be the amount?​

Answer 1

Answer:

For the initial rate of interest, we have

Interest,

I = 735 – 600 = 135

Principal,

P = 600

Time,

T = 5

Rate of interest, R = ?

( to be calculated )

So, applying the formula of simple interest, we have ;

I = P × R × T

100

135 = 600 × R × 5

100

So,we have,

R = 135 × 100 = 4.5%

3000

The initial rate of interest is 4.5%

Now, when the rate of interest is increased by 2% , it becomes 6.5%

So,

I = 600 × 6.5 × 5 = 195

100

Amount = I + P = 195 + 600 = 795

Hence, The amount for this rate of interest is Rs.795

Answer 2

Answer:

For the initial rate of interest, we have

Interest,

I = 735 – 600 = 135

Principal,

P = 600

Time,

T = 5

Rate of interest, R = ?

( to be calculated )

So, applying the formula of simple interest, we have ;

I = P × R × T

100

135 = 600 × R × 5

100

So,we have,

R = 135 × 100 = 4.5%

3000

The initial rate of interest is 4.5%

Now, when the rate of interest is increased by 2% , it becomes 6.5%

So,

I = 600 × 6.5 × 5 = 195

100

Amount = I + P = 195 + 600 = 795

Hence, The amount for this rate of interest is Rs.795

I hope you get help.