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Question
a sum of money at simple interest amounts to 24000 in 4 years if the rate of interest is increased by 20% the same sum amounts to 25800 in same time the original rate of interest
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Answer
let “P” be the principal. let “R” is the original interest rate in percentage
P{ 1 + ( 4*R/100)} = 24000
If “1.2 R” is the increased interest rate in percentage.
Then, P{ 1 + (4*1.2*R/100} = 25800
On solving the above two equations, we get
Principle = 15000; R = 15%
