Final answer:
To calculate the new amount of Rs 675 growing at a rate increased by 5% to 13.33% per year over 4 years, we use the simple interest formula. The future amount is found to be Rs 1034.91.
Step-by-step explanation:
To calculate the future amount of Rs 675 with a simple interest rate increase by 5%, we first need the original interest rate. This can be found using the given increase of the sum from Rs 708 to Rs 944 over 4 years. The difference, Rs 236, represents the interest accrued on Rs 708 over 4 years.
The annual interest can be calculated as Rs 236 / 4 years = Rs 59. Therefore, the original rate is Rs 59 / Rs 708 per year. This results in an original rate of 1/12 or 8.33% per year. Adding the 5% increase gives us a new rate of 13.33% per year.
To find the new amount that Rs 675 will grow in 4 years with the increased interest rate, we use the formula for simple interest: Future amount = Principal + (Principal × rate × time).
Plugging in the values gives us: Future amount = Rs 675 + (Rs 675 × 0.1333 × 4), which computes to Rs 675 + Rs 359.91 = Rs 1034.91.