A certain amount earns simple Interest of Rs. 1,750/- after 7 years. Had the interest been 2% more, how much more interest would it have earned ?

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BANK PO Exam (Canara Bank) 2003 click here to view all questions

A certain amount earns simple Interest of Rs. 1,750/- after 7 years. Had the interest been 2% more, how much more interest would it have earned ?

ARs. 35/-

BRs. 350/-

CRs. 245/-

DCannot be determined

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To find out how much more interest would have been earned if the interest rate were 2% more, we need to calculate the interest earned at the original rate and the interest earned at the increased rate. Let's denote: - Original interest rate = $R$ (in percentage) - Principal amount = $P$ - Time period = $T$ (in years) - Original interest earned = $I_1$ - Interest earned at the increased rate = $I_2$ Given: - $I_1 = Rs. 1,750$ - $T = 7$ years We can use the formula for simple interest: $$I = \frac{P \times R \times T}{100}$$ For the original interest rate: $$1750 = \frac{P \times R \times 7}{100}$$ $$P \times R = \frac{1750 \times 100}{7}$$ $$P \times R = 25000$$ Now, if the interest rate were increased by 2%, the new rate would be $R + 2$ (in percentage). For the increased interest rate: $$I_2 = \frac{P \times (R + 2) \times 7}{100}$$ The difference in interest would be: $$\text{Difference} = I_2 - I_1$$ Let's calculate $I_2$ and the difference: $$I_2 = \frac{P \times (R + 2) \times 7}{100}$$ $$= \frac{P \times (R \times 7 + 2 \times 7)}{100}$$ $$= \frac{P \times (25000 + 2 \times 7)}{100}$$ $$= \frac{P \times (25000 + 14)}{100}$$ $$= \frac{P \times 25014}{100}$$ $$= 250.14P$$ Now, calculate the difference: $$\text{Difference} = I_2 - I_1$$ $$= 250.14P - 1750$$ We have the value of $P$ from the earlier calculation: $$P \times R = 25000$$ $$R = \frac{25000}{P}$$ Substitute this value of $R$ into the difference equation: $$\text{Difference} = 250.14P - 1750$$ $$= 250.14P - 1750$$ $$= 250.14 \times \frac{25000}{R} - 1750$$ Now, we need to determine the value of $R$ (original interest rate). However, it's not given, so we can't determine the exact difference. Therefore, the answer is option D: Cannot be determined. nithin ? answered undefined All Comments

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