If the annual rate of simple interest increases from 11% to $17\frac{1}{2}$, then a person’s yearly income increases by ₹1,071.20. The simple interest (in ₹) on the same sum at 10% for 5 years is:

8,240

Principal ( P) = Rs P

Rate of simple interest increases from 11% to $17\frac{1}{2}$ and 

so Difference Between two Interest Rates  = 17.5 - 11% 

                                                              = 6.5%

ATQ 

6.5%  =  Rs 1071.20

1%     =  Rs 164.8

100%  = Rs 164800

 now Principal = Rs 16480

Rate ( R) =  10%

time ( T)  =  5 years

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

             =\(\frac{ 16480 ×   10 × 5 }{100}\)

            = Rs 8240