More Questions from Simple Interest

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
  • A
    ₹ 35
  • B
    ₹ 245
  • C
    ₹ 350
  • D
    Cannot be determined
  • E
    None 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**.
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