On a simple interest, Rs. 708 becomes Rs. 944 in four years. If the rate of interest is increased by 5%, then Rs. 675 will become how much in 4 years?

₹1,035

Simple interest in 4 years = 944 - 708 = 236

Simple interest in 1 years = \(\frac{236 }{4 }\) = 59

Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)

Amount = Principal + Simple interest

59 = \(\frac{708 ×Rate × 1 }{100}\)

Rate = \(\frac{59 × 100 }{708 ×  1 }\)

= \(\frac{25 }{3 }\)%

New rate = \(\frac{25 }{3 }\)% + 5% = \(\frac{40 }{3 }\)%

Now ,

 Sum2 = Rs. 675 , Time = 4 years

Simple Interest = \(\frac{675 ×40 × 4 }{100×3 }\)

= \(\frac{27 ×40  }{3 }\)

= 360

So , New amount after 4 years= 675 + 360

= Rs. 1035