Question

A sum of $Rs.1500$ amounts to $Rs.3000$ in five years at certain rate of simple intersect. If the rate of interest is increased by $1\%$ the same sum in the same time would amount to:

• A. $Rs.3,288$
• B. $Rs.3,312$
• C. $Rs.3,340$
• D. $Rs.3075$

Answer 1

The correct option is D $Rs.3075$

Amount $A=P(1+\frac{TR}{100})$

If a sum of $Rs.1500$ amounts to $Rs.3000$ in five years at certain rate of simple interest, then

$3000=1500(1+\frac{5R}{100})$

$⟹\frac{3000}{1500}=(1+\frac{R}{20})$

$⟹2=\left(\frac{20+R}{20}\right)$

$⟹2\times 20=20+R$

$⟹40-20=R$

$\therefore R=20$%

If the rate of interest is increased by $1$% then,

New Rate of interest $=21$% then,

Amount $A=1500(1+\frac{5\times 21}{100})$

$A=1500(1+\frac{21}{20})$

$A=1500\times \frac{41}{20}$

$A=Rs.3075$ (Ans)

Option D is correct.