Step 1: Calculate the new capital after the increase.
The initial capital is 1,650,000.
The capital is increased by 150,000.
NewCapital=InitialCapital+CapitalIncrease
NewCapital=1,650,000+150,000
NewCapital=1,800,000
Step 2: Calculate the interest on the initial capital at 12%.
InterestonInitialCapital=InitialCapital×Rate
InterestonInitialCapital=1,650,000×0.12
InterestonInitialCapital=198,000
Step 3: Calculate the interest on the new capital at 12%.
InterestonNewCapital=NewCapital×Rate
InterestonNewCapital=1,800,000×0.12
InterestonNewCapital=216,000
Based on the information provided, here are the calculations:
• The new capital after the increase is 1,800,000.
• The interest on the initial capital at 12% is 198,000.
• The interest on the new capital at 12% is 216,000.
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