The simple interest on a certain sum at 6% p.a. is Tk. 360 in 1 year. What will be the additional interest earned in 1 year if the rate increases to 7% p.a. on the same sum?

A

Tk. 60

B

Tk. 80

C

Tk. 70

D

Tk. 100

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Question: The simple interest on a certain sum at 6% p.a. is Tk. 360 in 1 year. What will be the additional interest earned in 1 year if the rate increases to 7% p.a. on the same sum?

Solution:
Given,
Interest at 6% for 1 year:
Simple Interest, SI1 = Tk. 360
Interest rate, R = 6%
Time, T = 1 year (initial)

We know,
SI1 = PRT/100
360 = (P × 6 × 1)/100
P = (360 × 100)/6
P = Tk. 6000

So, the original sum (principal) is Tk. 6000.

Now,
Interest at 7% for 1 year:
SI2 = PRT/100
SI2 = (6000 × 7 × 1)/100
SI2 = Tk. 420

Additional interest = SI2 - SII
= 420 - 360
= Tk. 60

 

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Updated: 1 month ago

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