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Radhika Behl
Asked: 2022-10-31T02:47:19+05:30 In:

A sum of Rs. 400 at compound interest amounts to Rs. 441 in 2 yr. What will be its amount, if the rate of interest is increased by 5%?
1. Rs. 484
2. Rs. 530
3. Rs. 512
4. Rs. 560

A sum of Rs. 400 at compound interest amounts to Rs. 441 in 2 yr. What will be its amount, if the rate of interest is increased by 5%?
1. Rs. 484
2. Rs. 530
3. Rs. 512
4. Rs. 560
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1 Answer

  1. Correct Answer – Option 1 : Rs. 484

    Given:

    Sum = Rs.400

    Amount = Rs.441 

    Time = 2 years

    Formula Used:

    For compound interest,

    A = P(1 + R/100)n

    where,

    A = Amount 

    P = Sum

    R = Rate of interest

    n = Number of years

    Calculation:

    A = P(1 + R/100)n

    ⇒ 441 = 400(1 + R/100)2

    ⇒ 441/400 = (1 + R/100)2

    ⇒ √(441/400) = 1 + R/100

    ⇒ 21/20 = (100 + R)/100

    ⇒ 21 = (100 + R)/5

    ⇒ 105 = 100 + R

    ⇒ R = 105 – 100

    ⇒ R = 5%

    Now the rate of interest increased by 5%

    ⇒ Total rate of interest = 5% + 5%

    ⇒ Total rate of interest = 10%

    A = P(1 + R/100)n

    ⇒ A = 400 (1 + 10/100)2

    ⇒ A = 400 (1 + 1/10)2

    ⇒ A = 400 (11/10)2

    ⇒ A = 400 × 11/10 × 11/10

    ⇒ A = 4 × 11 × 11

    ⇒ A = 484

    ∴ Amount received is Rs.484

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