Question

A sum of $\$900$ amounts to $\$1224$ in 4 years at simple interest. If the interest rate is increased by 3%, what would be the new amount?

• A. 1300
• B. 1332
• C. 1348
• D. 1421
• E. None of these

Answer 1

The correct option is B 1332

$SI=1224-900=324324=900\times x\times 4\times \frac{1}{100}x=9\%\text{New rate of interest}=9\%+3\%=12\%\text{New SI}=900\times 12\times 4\times \frac{1}{100}=432\text{New total amount}=432+900=1332$