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A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to if the rate of interest is increased by 2 % for the same time?
  • a)
    Rs.512
  • b)
    Rs.520
  • c)
    Rs.490
  • d)
    Rs.515
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to ...
We know that,
Now rate is increased by 2 %
So, new rate is 7%
New Amount = S.I + P = 112 + 400 = Rs.512
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Most Upvoted Answer
A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to ...
Given information:
- Principal amount (P) = Rs.400
- Amount after 4 years = Rs.480
- Rate of interest = ?
- New rate of interest = Increased by 2%

Calculation:
- Let the rate of interest be 'r%'
- According to simple interest formula:
Amount = Principal + Simple Interest
- Given, Amount after 4 years = Rs.480
Rs.480 = Rs.400 + Rs.400 * r * 4 / 100
Rs.80 = Rs.16r
r = 5%
- New rate of interest = 5% + 2% = 7%
- Using the new rate of interest, we can calculate the new amount after 4 years:
New amount = Rs.400 + Rs.400 * 7 * 4 / 100
= Rs.400 + Rs.112
= Rs.512
Therefore, the amount will be Rs.512 if the rate of interest is increased by 2% for the same time. Hence, the correct answer is option 'A'.
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A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to if the rate of interest is increased by 2 % for the same time?a)Rs.512b)Rs.520c)Rs.490d)Rs.515Correct answer is option 'A'. Can you explain this answer?
Question Description
A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to if the rate of interest is increased by 2 % for the same time?a)Rs.512b)Rs.520c)Rs.490d)Rs.515Correct answer is option 'A'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to if the rate of interest is increased by 2 % for the same time?a)Rs.512b)Rs.520c)Rs.490d)Rs.515Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to if the rate of interest is increased by 2 % for the same time?a)Rs.512b)Rs.520c)Rs.490d)Rs.515Correct answer is option 'A'. Can you explain this answer?.
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