Simple interest on a certain sum is one-fourth of the sum, and the interest per annum is four times the number of years. If the rate of interest increases by 25%, then how much will the simple interest (in ) be on 23.600 for 6 years?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 2,592.
S.I. = (P × R × T)/100
⇒ (1/4)P = (P × 4 × T × T)/100
⇒ T2 = 25/4
⇒ T = √(25/4) = 2.5 years
Rate = 2.5 × 4 = 10%
New rate = (10 + 2)% = 12%
Now, S.I. = (3600 × 12 × 6)/100 = Rs.2592
Therefore, the simple interest will be ₹2,592