Practicing Success
A man borrows a sum of Rs.12,000 which amounts to Rs.13,200 in 2 years on simple interest. What would have been the amount if the rate of interest was doubled? |
Rs.13,400 Rs.14,400 Rs.12,400 Rs.14,000 |
Rs.14,400 |
Simple interest of 2 years = 13200 - 12000 = 1200 Simple interest of 1 years = \(\frac{1200 }{2 }\) = 600 We know, Simple Interest = \(\frac{Principal ×Rate × Time }{100}\) 600 = \(\frac{12000 ×Rate × 1 }{100}\) Rate = \(\frac{6000 ×100 }{12000}\) = 5% If rate is doubled i.e. New rate = 5% × 2 = 10% New simple interest = \(\frac{12000 ×10 × 2 }{100}\) = 2400 Amount = Principal + SI New Amount = 12000 + 2400 = 14400 |