A sum of ₹400 amounts to ₹480 in 4 years. What

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A sum of ₹400 amounts to ₹480 in 4 years. What will it amount to if the rate of interest is increased by 2%?

Given that , Principal = ₹ 400 and Amount = ₹ 480
Simple Interest = Amount - Principal = ₹(480 – 400) = ₹80
As we know that ,

SI =	P × R × T
	100

∴ 80 =	400 × r × 4	⇒ r = 5
	100

Now, r = 7% (2% increase)

∴ S.I =	400 × 7 × 4	= 112
	100

∴ Amount = Principal + SI = ₹ (400 + 112) = ₹ 512