Question

A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 20% more, how much more interest would it have earned?
1. Rs. 35
2. Rs. 245
3. Cannot be determined
4. None of these

Answer 1

Correct Answer - Option 3 : Cannot be determined

Given:

Simple interest = Rs. 1750

Time = 7 years

Increased Rate of interest = 20% 

Formula Used:

Simple Interest = Principal × Time × Rate of interest/100

Calculation:

Let assume that the principal be 'P'

and rate of interest = 'R'

Casse:1

1750 = P × 7 × R/100      .............   (1)

Case:2 

SI = P × 7 × (R + 20)/100  .............  (2)

∴ It can't be solved. For 3 variables 3 equations to be needed.

The correct option is 3 i.e. Cannot be determined