Rs 1200 amounts to es.1632 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?
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Interest = amount – principal.
Interest earned in 4 years = 1632 – 1200 = 432 rupees.
Rate = simple interest * 100 / principal * time
Rate = 432 * 100 / 1200 * 4 = 9 percent per annum.
New rate of interest = 10 percent per annum.
New interest = (1200 * 10 * 4) / 100 = 480 rupees.
New amount = principal + new interest = 1200 + 480 = 1680 rupees.
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