Business Studies, asked by jahnavivanteru6244, 1 year ago

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?

Answers

Answered by Answers4u
6

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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