Question
Rs.700 amounts to Rs.742 in 2 years at a certain rate.
If interest rate is increased by 2%, then what will be the new interest?Solution
SI = 742 - 700 = Rs. 42 => (700 × R × 2)/100 = 42 => R = 3% New SI when R increases by 2% = (700 × 5 × 2)/100 = Rs. 70
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