Simple Interest Calculation

Given values:

Simple interest = Rs. 1750

Time = 7 years

Simple interest formula:

Interest = (P × R × Time) / 100

Let’s denote the principal amount as P and the rate of interest as R.

1750 = (P × R × 7) / 100

Now, if the interest rate were 2% more:

New interest rate = R + 2

New interest = (P × (R + 2) × 7) / 100

Difference in interest = New interest – Original interest

= ((P × (R + 2) × 7) / 100) – ((P × R × 7) / 100)

= (P × 7 × (R + 2 – R)) / 100

= (P × 7 × 2) / 100

To find the difference in interest, we need to find the principal amount (P).

We can rearrange the original simple interest formula to solve for P:

P = (1750 × 100) / (7 × R)

Since we don’t know the exact value of R, let’s use the fact that the difference in interest is only dependent on the principal amount (P) and the time (7 years).

We can simplify the expression for the difference in interest:

Difference in interest = (P × 7 × 2) / 100

= (P × 14) / 100

= 0.14P

Now, let’s find the value of 0.14P:

We know that the original interest is Rs. 1750:

1750 = (P × R × 7) / 100

Multiply both sides by 100:

175000 = P × R × 7

Divide both sides by (R × 7):

(P × 100) / (R × 7) = 175000 / (R × 7)

2500 = P

Now, we can find the difference in interest:

Difference in interest = 0.14P

= 0.14 × 2500

= 350

The interest would have earned Rs. 350 more.