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.