A sum of $1000 amounts to $1500 in 5 years at simple interest. If the interest rate is increased by 5% it would amount to how much ?  Choose the correct answer:
A) $ 1000
B) $ 750
C) $ 1541
D) $ 1478
E) $ 1750

Rationale: "s . i = 1500 - 1000 = 500 p = $ 1000 t = 5 years r = 100 * 500 / 1000 * 5 = 10 % new rate = 10 + 5 = 15 % new s . i . = 1000 * 15 * 5 / 100 = $ 750 new amount = 1000 + 750 = $ 1750 answer is e"
Answer: E