Correct Answer - Option 3 : Rs. 11,088

**Given:**

Principal = Rs. 7,200

Amount = Rs. 9,360

Time = 6 years

Increased Rate of interest = 4%

**Formula used:**

Amount = Principal + Simple Interest

Simple Interest, = (Principal × Rate × Time)/100

**Calculation:**

As we know that

Amount = Principal + Simple Interest

⇒ Rs. 9,360 = Rs. 7,200 + SI

⇒ Rs. 2,160 = SI

Now,

Simple Interest, = (Principal × Rate × Time)/100

⇒ Rs. 2,160 = (Rs. 7,200 × R × 6)/100

⇒ (2,160 × 100)/(7,200 × 6) = R

⇒ 5% = R

So, Increased Rate of interest = (4 + 5)%

⇒ 9%

Again,

Simple Interest, = (Principal × Rate × Time)/100

⇒ (7,200 × 9 × 6)/100

⇒ Rs. 3,888

Again,

Amount = Principal + Simple Interest

⇒ Rs. (7,200 + 3,888)

⇒ Rs. 11,088

**∴ The amount after 4% increment in rate of interest is Rs. 11,088.**