This question was previously asked in

Official Soldier Technical Paper: [Trichy (CHE)] - 27 Dec 2020

- Rs. 672
- Rs. 768
- Rs. 648
- Rs. 792

Option 2 : Rs. 768

**Given:**

Principle = Rs. 600, Amount = Rs. 720,

Time = 4 years, Interest increased by = 2 %

**Formula used:**

Simple Interest (SI) = Amount(A) – Principle (P)

Simple Interest (SI) = [Principle (P) × Rate of Interest (R) × Time (T)]/100

**Calculation:**

SI = Rs. (720 – 600) = Rs. 120

⇒ 120 = (600 × R × 4)/100

⇒ R = 5 %

According to the question,

New rate of interest = (5 + 2)% = 7%

SI = (600 × 7 × 4)/100

⇒ Rs. 168

Amount( A ) = Principle (P) + Simple Interest (SI) = Rs. (600 + 168)

⇒ Rs. 768

**∴ The amount will be Rs. 768.**

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