# 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?

- 1000
- 992
- 942
- 900

**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.