Aptitude - Simple Interest - Discussion

13. 

A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?

[A]. Rs. 35
[B]. Rs. 245
[C]. Rs. 350
[D]. Cannot be determined
[E]. None of these

Answer: Option D

Explanation:

We need to know the S.I., principal and time to find the rate.

Since the principal is not given, so data is inadequate.


Moncy Kurien said: (Sep 27, 2010)  
This answer would actually keep changing according to the rate of interest that we take which will in-turn change the principal amount. That is if we take r as 5 and 7 then the answer will be Rs 700. So unless and until we are provided with the correct principal amount I guess we cannot find the exact answer.

Please correct me if I am wrong. Thank you.

Sundar said: (Jun 24, 2011)  
@ALL

SI = (PRT/100)

By applying given data in the above formula

1750 = (P x R x 7/100)

In order to find rate 'R', we need the value of 'P' (Principal amount).

Since the principal is not given, so data is inadequate.

Raghavendra said: (Aug 7, 2011)  
Sorry we cant understand ?

Singh Abhishek said: (Sep 4, 2011)  
As SI is directly proportional to R..

so if r is increased by 2 %

SI will also increase by 2 %

so ans is 35(2% of 1750)

let me kno if i m wrong.. :)

Rahul said: (Oct 11, 2011)  
S.I. for 1 year = 1750/7=250
increase by 2% = 250*2/100=255
every yr he would get extra 5 rs

So for 7 yrs = 5 * 7= 35

Jeni said: (Nov 3, 2011)  
I can't understnd the solution, can you please explain clearly ?

Rishi said: (Jan 25, 2012)  
As according to question the principal is same in both cases. For first case we have: 1750 = (P*R*7)/100.

Again according to question new Rate is 2% more, i.e (R + 2% of R) or (51*R)/50. Now new Interest would be: I = (P*51R*7)/(50*100).

Now solve these two equations by putting value of PR from first in second equation. The answer comes is Rs.35.

Solution given by Singh Abhishek and Rahul are also correct. My way of solving is very basic solution.

Praveen Sah said: (Feb 8, 2012)  
GIven that: (P*R*7)/100 = 1750

Now we have to find : P*(R+2)*7/100 = ?

But we cannot find P and R both from just one equation.
Hence Cannot be determined

Dilip Patel said: (Mar 6, 2012)  
Folks, there is a answer for this question and is Rs.35.

As former persons said that answer depends on Amount or principal. its not so.... please check with different principal amount assumptions and match your answers... always same .. 35 is difference and and second case SI is always 1785, never mind whatever assumptions made, if P is assumed 10000 then R comes out to be 2.5% if P is assumed 5000 then R comes out to be 5%, but SI for 2% more rate always is 1785. so there is fix answer for the question.

Prethi said: (May 14, 2012)  
Please anyone correct me if I'm wrong. I solved the problem in following way
let p be the sum and r rate of interest
1750=p*r*7/100..........(1)
Now r if increased by 2% interest becomes 1.2r
Now equation for S.I=p*1.2r*7/100
By multiplying equation 1 by 1.2 on both sides we get
p*1.2r*7/100=1.2*1750=2100
So 2100-1750=350 is the answer

Vasanth said: (Jun 1, 2012)  
If are increased by 2% interest becomes 1.02r.

Vijay said: (Aug 25, 2012)  
Here the ans is sp=3500
prinicipal amount is same so p1=p2=x,time is same,the rate is different r,2r

p1=p2
sp1*100/t1r2=sp2*100/t2r2
1750/(7*r)=sp/(7*2r)
sp=3500
so sp2-sp1=1750

Satyajit Das said: (Apr 19, 2013)  
1750 = PR7/100.

=>PR = 25000-----(1).

Again,
SI = (P*102/100*R*7) / 100.

=>PR = (100*100*SI) / 7*102------(2).

By equating (1) and (2).

SI = 1785.

So ans is 1785-1750 = 35.

Anusha said: (Feb 11, 2014)  
@Satyajit das.

You said that si= (p*102/100*R*7)/100.

How it will come?

Mainly I want the number 102 from where it has come?

That equation 2 is also same doubt.

Can you explain me briefly?

Satyajit Dash said: (Feb 18, 2014)  
Hi @Anusha,

As in question given, 2% more interest than the first case,
So, rate of interest = r+(2r/100) = 102r/100.

Hope understood.

Waseem Khan said: (Mar 4, 2014)  
I think 245 is correct as they asked for Increase in interest. So 2% of total interest earned for 7 year is 245. Please clarify me if it is wrong one.

Vikramjeet said: (May 1, 2014)  
Hey friends it was said that when no principal amount given then take 100 =p so why we can't write this value.

Promish said: (Sep 21, 2014)  
Hey friends I think the answer will be option A i.e. 35,

Explanation:

let r be 100,and it is increased by 2% for second case, so for the second case r will be 102.
I = Rs. 1750, t=7 yrs, r=100(let).

So P = (I*100)/r*t=(1750*100)/(100*7) = 250.

So use this P for the second case,and S.I will be,
I = (P*t*r)/100=(250*7*102)/100 = 1785.

So the increase will be = Rs.(1785-1750) = Rs.35.

Arjun said: (Nov 18, 2014)  
Ans: B.

In the 1st case: S.I = 245R/2 (Let, R =Rate of Interest).

In the 2nd case: S.I = (245R/2+490/2).

So, in the 2nd case we have Rs.245 extra.

Rahul said: (Jan 2, 2015)  
Let the rate of S.I is 100 (initially).

In the first case:

Sum = (S.I x 100)/(Rate of interest x time).

So sum = (1750 x 100)/(100 x 7) = 250.

In the 2nd case:

The interest rate is 2% more, so the interest rate is 102%.

S.I = (sum x time x Rate of interest)/100.

= (250 x 7 x 102)/100 = 1785.

So the gain in S.I is (1785-1750) = 35.

Thank You.

Sparsh Chandra said: (Mar 20, 2015)  
Can't the answer be Rs. 255.

Since Rs. 1750 interest earned in 7 years means Rs. 250 interest earned in 1 year.

Now (P*R*T)/100 = SI.

For 1 year, it will be (P*R*1)100 = 250.

i.e P*R = 25000.

Now again, when rate increased by 2%.

For 1 year, it will be (P*102R/100*1)/100 = ?

i.e (P*R*102/100)100 = ?

Putting P*R = 25000 from above.

(25000*102/100)100 gives Rs. 255.

Please correct me if I'm wrong but this is what I think.

Sanju said: (May 4, 2015)  
@Sparsh.

255-250 = 5.
5*7 years = 35.

That's the answer. Increase in simple interest.

Prateek said: (May 8, 2015)  
i = pxrxt/100.

pxr = (ix100)/t = 25000.

Now we have constant value of pxr.

Now if we are saying that the new rate is 2% more.

Than new rate = r+(2% of r) = r+(2r/100) = r(102/100) = 1.02r.

When new are is 1.02r.

The i = px(new-r)xt/100.

i = px 1.02r x t/100 = (pxr x 1.02 x 7)/100.

We have pxr = 25000 (calculated in first step).

So i = 25000x1.02x7/100 = 1785.

So gain in interest = 1785-1750 = 35.

Padmini said: (Jan 24, 2016)  
As rate of interest is 2% for 7 years it is 14%.

That's why there is increase in interest that is 1750(14%increase) = 1995.

The extra amount would be 1995-1750 = 245.

Depresser said: (Mar 4, 2016)  
For all those who are solving the problem using "2% of R" , R being the Rate of Interest, its not given so in the problem. It's given as 2% more..not 2% of R.

I had been trying to solve using this method and was getting answer as 350.

Then I realized the mistake and I am currently doing the problem as "R+2%".
Now I am not getting the answer since R is not known, as well as P(Principal).

In simple words..do the problem by "R+2%" not by "1.02R"
So the answer is D) Cannot be determined.

Pari said: (Mar 18, 2016)  
Please anyone confirm that what is the correct answer or data is not sufficient. As Indiabix says answer "Cannot be determined".

Ankit said: (Jun 8, 2016)  
I have seen similar questions in Kiran's Mathematic book and Paramount airthematic book.

A 2% increase in rate means.

If the rate was 5% per annum earlier then it is 7% now.

So I guess IndiaBix is right and hence no solution exist to this problem.

Shubham said: (Jul 16, 2016)  
They are asking about the amount of increase. So 35 is the answer.

Simanta said: (Jul 17, 2016)  
I think the answer will be Rs. 35 because if we take the ratio of the two simple interests then the principal, time and rate of interest cancelled out. In RHS it is 7/7.14. In LHS it is 1750/ (SI2).

After solving the answer will be Rs. 35.

Manisha said: (Jul 31, 2016)  
I think, here rate of interest is obviously in percent, i.e. increased by 2% simply means, r% will become (r+2)%, thus we can't get 35 as an answer. We need to know rate of interest for it which can't be evaluated due to insufficient data. Thus answer will be 'D'.

Virender Sawaliya said: (Aug 5, 2016)  
1750 = P * 7 * R/100.

So P * R = 25000.

If R is 2% more then P * R * 102/100 = 25500.
So new S.I.= 25500 * 7/100 = 1785
so increase S.I = 1785 - 1750 = 35.

Amrendra Kumar said: (Aug 8, 2016)  
If interest would be 2% more for 7 years = 2/100*7 = 0.14, Now, earlier interest received with same principle ie Rs. 1750. Hence with 2% more interest it would be Rs. 1750*0.14 = 245,

Hence option B is correct.

Joby Jacob said: (Aug 18, 2016)  
Yes, I do agree with Amrendra Kumar. I think its option "B".

There is a total increase of 2 * 7% in the total interest of Rs. 1750.

i.e An additional 14% will be the extra amount added view increase in 2% from the existing SI.

If, we consider the existing total SI as 100%, ie Rs. 1750 as 100%, then the increment is 114% of 1750.

=1750 * 114/100 = 1995.00.

Net increase is 1995 - 1750 = 245.

Shivani Singh said: (Aug 25, 2016)  
1750 = P * R * 7/100 ------> equation1.
N = P * 102R * 7/100 ------> equation 2 (n is the value of S. I. If the interest is increased by 2 %).

Dividing equation 1 by equation 2, we get,

1750/n = 1/102.
N = 1750 * 102.
N = 178500.
So, the required value = 178500 - 1750.
= 176750.

Prakash said: (Sep 19, 2016)  
Here, the interest is directly proportional to the rate of interest.

Prantik Mondal said: (Sep 20, 2016)  
If 2% increase the interest for 7 years, then (2 * 7)/100 = .14
So, for this .14 interest in 7 years is the extra earned money.
1750 * (0.14) = 245 Rs total earned in 7 year for extra 2% interest.
So, the answer is option "B".

Dua Najeeb said: (Oct 2, 2016)  
How we solve it?

Find the rate %per annum by applying the formula: r = I * 100/t * p.

Rs. 700 gives Rs 210 simple interest in 3 years.

Pranav said: (Nov 6, 2016)  
Consider the initial rate of interest be 10%, then the principle is calculated to be 2000. Using 12% rate of interest the new SI is 2100. So the answer is Rs. 350.

Manjeet Kumar said: (Nov 7, 2016)  
The Answer is 35.

Since the rate is increased by 2% so the S.I gets increased by 2%.
2% of 1750 = 35.

Mars said: (Dec 19, 2016)  
@All.

Hi, Let me explain.

The answer the author comes up is actually correct.

While we think we can solve this problem by applying 'let x' solution, we are not, however.

This is because we are playing with the rate here and rate(%) is very tricky. Try to solve using 10% rate, you get 350. However, try to use another rate, say, 5%, you get 700 as the difference between the old rate and the plus 2 rate.

I believe in them by saying this question's answer is indeterminable due to lack of data reason.

Naved said: (Dec 30, 2016)  
All the solution are based on the percentage of a ate of interest. But if you don't know the actual amount how could you say that the 2% of this amount will be this?

Ashik said: (Jan 2, 2017)  
"Had the interest been 2% more, " - S.I is increased by 2% right? not the Rate of Interest (R).

Sasikumar said: (Jan 15, 2017)  
ANS : 245.

Interest is increased by 2% more,so (7 years) x 2% = 14%.
Interest is 1750, so now 1750 + 14% = 1995.
The difference between 1995-1750 = 245.

Vivek said: (Feb 6, 2017)  
pr = 1750/7 = 250
r = 250/p.

2% more => 250/p + [250/p]*2%=255/p is the new r.
SI = p * 255/p * 7 = 1785.

1785 - 1750 = 35 rupees more.

Chatrapathi said: (Mar 8, 2017)  
s.i = p * 7 * r/100 = 1750.
If rate of interest increses by 2% then p * 7 * 1.02r/100 = 1750 * 1.02 = 1785.

The extra interest he will get = 1785 - 1750 = 35.

Manish said: (Mar 28, 2017)  
Question is "how much more interest would it have earned?". So we already have simple interest of Rs. 1750.

So, 2% of 1750 will be 35.

Please correct if I'm wrong.

Hemant said: (Apr 8, 2017)  
We have 1750 as interest.
Let say this is our 100% interest so, we have to find 102% interest .
That's it just cross multiply .
100=1750.
102=?
(1750 * 102)/100 = 35 rs.

Manikanta said: (Jun 8, 2017)  
You're right @Depresser.

In the question earlier interest was let it be R%, later part of the question if interest is increased by 2% that means " R+0.02 " not [ R+R * 0.02].

Akhil Subramanian said: (Jul 14, 2017)  
1750 divided by 7 give Interest for one year ie, Rs 250.

Here, 2% of 250 is 5.
So if the interest is increased by 2% then the Interest for one year will 255.
So for 7 years 1785.
Thus the difference will be Rs 35.

Bhadresh Savani said: (Jul 16, 2017)  
B is correct.

2% for 7 years will be 14%.
14% of 1750 is 245.

Anshul Agrawal said: (Jul 24, 2017)  
Correct answer is 35 as interest for one year will be 250 then increase with 2% lead to 255.

Then for 7 years, it will be 255*7=1785.

So, difference between interest will be 1785-1750=35.

Swati said: (Aug 17, 2017)  
Correct answer is 35.

Saumya said: (Aug 22, 2017)  
35 is the correct answer.

Megha said: (Oct 18, 2017)  
Why don't we assume 100 as a principal?

Can anyone answer this?

Tarun Singh said: (Nov 15, 2017)  
35 is correct ans

Tarun Singh said: (Nov 15, 2017)  
1750 = pr7/100.
Value of pr/100 = 250 from above.

Now r is 2% more.
S.I = p(1.02r)7/100.
S.I = 7.14pr/100.

Substitute the value of pr/100 in above,
S.I = 7.14*250 = 1785.
So difference = 1785-1750 = 35.

Amu said: (Dec 19, 2017)  
Actually, we have to find just amount of how much earned not a rate of interest so 35 answer is correct.

Reetu said: (Feb 9, 2018)  
According to me, the answer is Rs 175.14.

Pappu Das said: (Feb 16, 2018)  
Correct answer - c - 350, how.

In 7 yr SI - RS. 1750
In 1 yr SI - RS . 250, so interest increase by R - 10%.
Get principal through formula - P*R*T/100,
1750 = P * 10 * 7 /100.
P = 2500.

So, increase rate of interest by 2% , ( 10%+2%) = 12 %.
SI at 12 % interest rate on 7 years on same principal = 2100,

Finally - SI at 12% - SI at 10 %.
2100 - 1750 = 350 answer.

Narendra said: (Mar 4, 2018)  
2% increase in interest- here interest is simple interest because we never call rate of interest as interest.

So answer is 2% of interest= (2% of 1750) =35 given, interest=1750.

Manoj said: (Apr 8, 2018)  
Can we consider the amount as 1000 and calculate the interest. As for one year S.I is 250. So we get the rate of interest as 25. And if we add two percent to it and get S.I it will be 270. 270x7 will give you 1890. So 1890-1750 should give you 140. Then Why it can't be determined?

Aakash said: (Apr 23, 2018)  
The answer should be 35.

Given:
p*r*7/100 = 1750.

According to question;

new rate = r+2%of r.
new rate = r+0.02*r.
new rate = 1.02*r.
Hence new SI = p*1.02*r*7/100,
new Si = 1.02*p*r*7/100,
new Si = 1.02*1750,
= 1785.

Difference = 1785-1750 = 35.

Sooraj said: (May 4, 2018)  
SI=P * R/100 * T,
1750=P * R/100 * T,
When R increase by 2%.
R become 1.02R,
new SI = P * 1.02R/100 * 7,
= P * R/100 * 7 * 1.02,
= 1750 * 1.02,
= 1785.

Increase in SI = 1785-1750 = 35.

Ashwini said: (Jun 14, 2018)  
The Answer must be 350.

Jay said: (Jul 8, 2018)  
35 is the correct answer according to me.

Kishan Patel said: (Jul 8, 2018)  
I agree with you @Sooraj.

Debjit Dey said: (Aug 2, 2018)  
I think the answer is 35.

Bhavuk said: (Aug 24, 2018)  
S.I. for 1 year = 1750/7=250.
increase by 2% = 250*2/100=255.
Every yr he would get extra 5 rs.

So, for 7 yrs = 5 * 7= 35

Uppalapu Venkatesh said: (Aug 24, 2018)  
I think the answer is 35.

Mehrzad said: (Aug 25, 2018)  
Yes, According to me, the answer should be 35.

Kunal Roy said: (Sep 4, 2018)  
As per data specified p and yr are constant only rates changes.
Moreover, SI is directly proportional.
So, I think the answer would be 35.

Ajit Arya said: (Sep 26, 2018)  
According to me;

Interest for 7 yr is 1750 means
For 1 yr interest is 250.
So assume the interest is 10% this way principle amount becomes 2500.
And now 8% interest for 7 yr of 2500 = 1400.
So the more interest earned = (1750-1400) = 350 ans.

Soumya Gochhayat said: (Dec 6, 2018)  
Let Principal=100 so,
1st interest = prt/100,
=> 1750= (100 * r * 7)/100,
=> r = 250,
Then if r increases by 2%,
then r =250*102/100 = 255,
so 2nd interest = (100 * 255 * 7)/100 = 1785,
Difference = 1785 - 1750 = 35. (ans).

Koko said: (Mar 5, 2019)  
Here, the 2% more interest means in absolute S.I terms, as in if it was 6% interest then how much more would you earn if you had 8% interest, not 6% x 1.02 which is 6.12%. Since we cannot calculate the S.I itself, we will never be able to find the answer. Please anyone help me to get it.

Roneet said: (Aug 11, 2019)  
Assuming the rate of interest to be 10% in 1st case we get;
P=(1750*100)/(10*7),
P=2500.

So applying the principal in 2nd case we get,
S.I=(2500*10.2*7)/100.

Here, the rate of interest is taken to be 10.2 since 2% more of 10 that is assumed in 1st case.

S.I=1785.

So 2nd S.I - 1st S.I will be;

1785-1750=35 This should be the answer but as the rate is not mentioned and it is assumed so the answer may vary from person to person and also method to method of solving.

Sanju Manna said: (Jan 17, 2020)  
Here the answer is 35.

Because 2% is not the increasing percentage of rate of interest it is only the increase in the total interest which is given below.
So, the 2% of 1750 is 35.

Gopal Gupta said: (Mar 24, 2020)  
According to me, the question says to increase the rate by 2%. Which means if the original is R% then the new rate is (R+2)%.

So old interest.
I=PR*7/100.

And new interest.
I'=P*(R+2)*7/100.

Thus the answer can't be determined without the principal.

Markie said: (Apr 12, 2020)  
The answer cannot be determined because the principal is not given and we cannot assume rate r to be 100 or any value. Thanks.

Puthiabala said: (Apr 20, 2020)  
The Answer is 35.

Equation One = 7*P*R/100=1750
to be found (7*P*R+2)/100 = ?
we can rewrite as (7*P*R)100 + 2/100 = ?
and then 1750 + 2/100 = 35.

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