Rs.8800 becomes Rs.12000 at a certain rate of interest in 4 years. If rate of interest would be 3% more, then find the amount at the end of 7 years.
Answer & explanation
Correct answer: option 3
Simple Interest = Amount - Principal
= ₨. 12000 - ₨. 8800 = ₨. 3200
rate = \(\frac{3200}{8800\;×\;4}\) x 100 = 9.09%
new rate = 9.09 + 3 = 12.09%
rate for 7 years = 12.09 x 7 = 84.63
Amount = \(\frac{184.63\;×\;8800}{100}\)
= 16248