A cooperative society increases the annual rate of simple interest from 10% to 16½ %, then the yearly income of a person increases by ₹1,077.70. The simple interest (in₹) on the sum at 10% for four years will be:
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Correct answer: C
Explanation
The correct answer is option 3 i.e. 6,632.
Given, SI at 16.5% - SI at 10% = 1077.7
⇒ P × 1 × 16.5/100 - (P × 1 × 10/100) = 1077.7
⇒ P × 6.5/100 = 1077.7
⇒ P = 16580
SI at 10% = 16580 × 4 × 10/100 = 6632