Question

Rs.6200 amount to Rs.9176 in four years at simple interest.if the interest rate is increased by 3%;it would amount to how much?

Answer 1

Acc to question,

Principle = Rs 6200

Amount = Rs 9176

Time = 4 years

Rate = ?

We know that, Amount = Principle + Interest

Therefore, Interest = Amount - Principle = Rs 9176 - Rs 6200 = Rs 2976.

Now, Rate = (Interest x 100) / (Principle x Time) = (2976 x 100)/(6200 x 4)

or, 297600/24800 = 12%

Now, if rate is increased by 3% then final rate = 15%

Then, Interest = (6200 x 15 x 4)/100 = Rs 3720.

Amount = Principle + Interest = Rs 6200 + Rs 3720 = Rs 9920 (Ans).