What will be the Amount? If

A sum of 800 amounts to 920 in 3 years at simple interest. If the interest rate is increased by 3%, how much could it amount to?

  1. 1000
  2. 992
  3. 942
  4. 900
Nitin Baudh Learner Asked on 31st July 2015 in Maths.
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  • 1 Answer(s)

    Answer: (2) Rs.992
    Explanation:-
    Given-
    Principal = Rs.800,  Amount = Rs.920, Time = 3 years   & Rate = ?
    Simple Interest = 920 – 800 = Rs.120
    Formula-
    Simple Interest = P x R x T/100
    Where, P – principal, R – rate  & T – time.
    Then, the 120 = 800 x R x 3/100
    R = 120/8 x 3
    R = 5 %
    Interest increased by 3 %,
    Then the rate = 5 + 3 = 8 %.
    Then, the S I = 800 x 8 x 3 /100
    = 8 x 24
    = Rs.192
    Then, the amount = 800 + 192
    = Rs.992
    Hence, the answer is (2) Rs.992.

    Anurag Mishra Professor Answered on 31st July 2015.
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