A sum of ₹6,000 amounts to ₹7,800 in 4 years at simple interest. If the interest rate is increased by 2.5%, then the same sum in the same time would amount to:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. ₹8,400.
SI = 7800 - 6000 = 1800
SI = (P × R × T)/100
⇒ 1800 = (6000 × R × 4)/100
⇒ R = 7.5%
New rate = 7.5 + 2.5 = 10%
New SI = (6000 × 10 × 4)/100 = 2400
New amount = 6000 + 2400 = 8400