Correct Answer - Option 1 : Rs. 8100

**Given: **

Amount = Rs. 7200

Principal = Rs. 6,000

Time = 4 years

**Formula Used:**

Amount = Principal + Interest

Simple interest = (Principal × Time × Rate of interest)/100

**Calculation:**

Simple interest = Amount - Principal

⇒ Simple interest = Rs. 7200 - Rs. 6000

⇒ Simple interest = Rs. 1200

Simple interest = (Principal × Time × Rate of interest)/100

⇒ 1200 = (6000 × 4 × Rate of interset)/100

Rate of interest = 5% p.a.

Now,

Increase rate of interest = 5%p.a. + 2% p.a. = 7% p.a

Time = 5 years

⇒ Simple interest = (6000 × 5 × 7)/100

⇒ Simple interest = 2100

Amount = Principal + Simple interest

⇒ Amount = Rs. 6000 + Rs. 2100 = Rs. 8100

**∴ The amount in 5 years will be Rs. 8100.**