A sum of Rs. 4000 amounts to Rs. 4600 in 5 years at a certain rate of simple interest. What would be the amount, if the rate of interest is increased by 3 %?
Rs. 4900
Rs. 5000
Rs. 5200
Rs. 5600
Explanation:
Given,
Principal = Rs. 4000, Amount = Principal + SI = Rs. 4600
SI = Amount - Principal = 4600 - 4000 = Rs. 600
Time = T = 5 years and SI = Rs. 600
Since, SI =PRT/100
=> 600 = 4000 $\times$ R $\times$ 5/100
=> 600 = 200R
=> R = 3 % p.a.
Now the new interest rate is = 3% + 3% = 6 % p.a.
=> SI = PRT/ 100 = 4000 $\times$ 6 $\times$ 5/ 100 = Rs. 1200
Hence the required amount = Principal + SI
= 4000 + 1200 = 5200.