At a certain rate of simple interest ₹1200 amounted to ₹1632 in 4 years. If the rate of interest increased by 1%, what will be the amount after 4 years ?
Answer & explanation
Correct answer: option 4
S.I. in 4 years = ₨.1632 - ₨.1200
= ₨.432
S.I, in 1 year = \(\frac{432}{4}\)
= ₨. 108
rate = \(\frac{108}{1200}\) x 100
= 9%
Now the rate is increased by 1% = 10%
Amount = P + \(\frac{PxRXT}{100}\)
= 1200 + \(\frac{1200 x 10 x 4}{100}\)
= 1200 + 480
= 1680