Lokesh received an amount of ₹10,500 in 5 years, including simple interest, on a principal amount of ₹7,500. What would be the total amount he receives if the interest rate is increased by 4%?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e ₹12,000.
Interest = 10,500 – 7,500 = ₹3,000
SI = (P × R × T) / 100
⇒ 3000 = (7500 × R × 5) / 100 ⇒ 3000 = 375R ⇒R = 3000 ÷ 375 = 8%
New rate = 8% + 4% = 12%
New SI = (7500 × 12 × 5) / 100 = ₹4,500
New total amount = 7500 + 4500 = ₹12,000