A sum of Rs. 7,600 amounts to Rs. 7,980 in 2 years at simple interest. If the interest rate is increased by 5%, how much would it amount to?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs. 8,740.
SI = A - P = 7980 - 7600 = 380
SI = (P × R × T)/100
380 = (7600 × R × 2)/100
R = 380/152 = 2.5%
New Rate = 2.5% + 5% = 7.5%
New SI = (7600 × 7.5 × 2)/100 = 1140
New amount = 7600 + 1140 = 8740