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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