Question

A certain sum of Rs. 5000 amounts to Rs. 5500 in 2 years. What would it amount to if the simple interest rate percentage is increased by 3% and time duration is increased by 2 years?

Answer 1

Rs. 6600

Answer 2

1. Find the original rate:

   $$\text{SI} = 5500 - 5000 = 500 \text{ in 2 years}$$ $$500 = \frac{5000 \times r \times 2}{100} \implies r = \frac{500 \times 100}{5000 \times 2} = 5\%$$

2. Adjust for new conditions:

   • New rate = $5\% + 3\% = 8\%$
   • New time = $2 + 2 = 4$ years

3. Compute the new amount using simple interest formula:

   $$\text{SI (new)} = \frac{5000 \times 8 \times 4}{100} = 1600$$ $$\text{New Amount} = 5000 + 1600 = 6600$$