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A sum of ₹ 400 amounts to ₹ 441 in 2 yr. What will be its amount, if the rate of interest is increased by 5% ?
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- ₹ 484
- ₹ 560
- ₹ 512
- ₹ 600
Correct Option: A
According to the given condition.
441 = 400 (1 + R/100)2
⇒ 441/400 = (1 + R/100)2
⇒ (21/20)2 = (1 + R/100)2
⇒ 21/20 = 1 + R/100
⇒ (21/20) - 1 = R/100
⇒ R/100 = 1/20
∴ R = 5%
∴ new rate = 5 + 5 = 10%
∴ Amount = 400 (1 + 10/100)2
= 400 x (11/10) x (11/10)
= ₹ 484
