Aptitude - Simple Interest - Discussion

35 is the correct answer.

Correct answer is 35.

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.

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.

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.

We can find the principle by using this formula but we need to assume the interest rate.
P = si/(r*t).

r is rate of interest.

Increased rate of interest is 1.02r because increased rate is 2%= (2÷100).
p*7*r=1750*100 ==> eq 1.
p*7*1.02*r=(1750+x)100==> eq 2 (x is incresed rs).
eq1& 2 is written as below.
7pr=175000 ==>eq 3.
7.14pr=175000+100x==> eq 4.

Upon solving both eqn 3*4.
0.14pr=100x==>eq 5.
by solving eqn 1 we get pr=25000.
By substituting that in eq 5.
0.14*250 = x.
so, x = 35.

As per my knowledge answer is 245.

SI for 7 years =1750.
RoI increases 2% means 7years *2% =14% increased so;
100% ------ 1750 means,
114% ------ =( 1750*114) /100 = 1995,
Interest increased = 1995-1750 = 245.

According to me, the correct answer is 35.

The answer cannot be determined because the principal is not given and we cannot assume rate r to be 100 or any value. Thanks.