Q.If the interest rate increases by 5%, the simple interest on 4000 rupees increases by 800 rupees. What is the time period? (a) 4 years (b) 5 years (c) 6 years (d) 7 years
Answer: A
Difference in interest = Principal \(\times\) Time \(\times\) Difference in interest rate
or, \( 800= 4000 \times\) Time \(\times \cfrac{5}{100}\)
or, Time = \(\cfrac{800\times 100}{4000\times 5}=4\) years.
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