# What will be the New Interest? If

The amount ₹ 2,100 became ₹ 2,352 in 2 years at simple interest. If the interest rate is decreased by 1 %, what is the new interest ?

- ₹ 210
- ₹ 220
- ₹242
- $ 252

**Answer: (1) Rs.2100**

**Explanation:-**

Given-

Principal = Rs.21,00, Amount = Rs.2,352 and time = 2 years

Then, Simple Interest = 2352 – 2100 = Rs.252

252 = 2100 x 2 x R/100 Here, R = rate.

252 = 42R

R = 252/42

R = 6%

Rate is decreases by 1%

Then, Rate = 6 – 1 = 5%

New simple interest = 2100 x 2 x 5/100

= 21 x 10 = 210

hence, the answer is (1) Rs.2100.