Simple Interest Practice Test 1

P = Rs 675; Amount = Rs 837; T = 4 years; R = R
$\mathit{R}=\frac{\mathit{S}\mathit{I}\times 100}{\mathit{P}\times \mathit{T}}$ Where SI = 837 - 675 = Rs 162
$\mathit{R}=\frac{162\times 100}{675\times 4}=6\%$
If the interest rate is decreased by 2%
New the rate of interest = 4%
$\mathit{S}\mathit{I}=\frac{\mathit{P}\times \mathit{R}\times \mathit{T}}{100}$ $=\frac{675\times 4\times 4}{100}=108$
Amount = Rs 675 + Rs 108 = Rs 783