A sum of Rs. 4000 amounts to Rs. 4600 in 5 years at a certain rate of simple interest. What would be the amount, if the rate of interest is increased by 3 %.
Answer: C
\[ \text{SI} = \frac{P \times R \times T}{100} \]
Find the original rate first.
\[ \text{SI} = 4600 - 4000 = 600 \quad\Longrightarrow\quad 600 = \frac{4000 \times R \times 5}{100} = 200R \]
\[ R = 3\% \]
At \( 3 + 3 = 6\% \):
\[ \text{SI} = \frac{4000 \times 6 \times 5}{100} = 1200 \quad\Longrightarrow\quad \text{amount} = \text{Rs. } 5200 \]
The extra 3% over 5 years adds \( 4000 \times 0.15 = 600 \), doubling the interest.
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