Aptitude - Simple Interest - Discussion

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.

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.

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.

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'.

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.

They are asking about the amount of increase. So 35 is the answer.

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.