A certain amount earns simple interest of ₹ 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned ?
Aptitude
Simple Interest
Difficulty: Easy
Choose an option
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A₹ 35
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B₹ 245
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C₹ 350
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DCannot be determined
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ENone of these
Answer
Correct Answer: Cannot be determined
Explanation
### Concept & Missing Variables in Simple Interest
To determine the extra interest generated by an increased rate, you need to know the principal amount. The formula for extra interest is:
$$\text{Extra } SI = \frac{P \times \text{Extra } R \times T}{100}$$
### Step-by-Step Solution
* Given Simple Interest, $SI = \text{₹ } 1750$
* Given Time, $T = 7 \text{ years}$
* Given Rate Increase = $2\%$ p.a.
* Attempting to find the Extra Interest:
$\text{Extra } SI = \frac{P \times 2 \times 7}{100}$
* Because the Principal ($P$) is missing, we cannot solve this equation. We also cannot reverse-engineer $P$ from the initial $SI$ because the initial rate ($R$) is also unknown ($1750 = \frac{P \times R \times 7}{100}$).
### Exam Strategy & Shortcut
Recognize immediately that an absolute dollar amount of extra interest requires an absolute dollar principal. "2% more" means "2% more of the Principal". No Principal = No Answer.
### Common Pitfall
Students often mistakenly assume the $2\%$ applies to the interest already earned (i.e., calculating $2\%$ of ₹ 1750) rather than the principal, leading them to incorrect choices like ₹ 35.
### Final Answer
Therefore, the correct answer is **Cannot be determined**.