Question

Rs $2000$ amounts to Rs. $2600$ in $5$ years at a certain rate of simple interest. If the rate of interest is $3$ more than the previous rate, then what will the same sum amount to in the same time period ?

• A. Rs 3200
  
• B. Rs 2900
• C. Rs 2700
  
• D. Rs 2560

Answer 1

The correct option is B Rs 2900

Given, $P=$ Rs $2000$, $A=$ Rs $2600$, $T=5$ years

$\therefore$ $S.I.=A-P=$ Rs $2600-$ Rs $2000$ = Rs $600$
$R$ = $\frac{S.I.\times 100}{P\times T}=\frac{600\times 100}{2000\times 5}=6$% per annum
Now, $P=$ Rs $2000$, $T=5$ years,
$R=(6+3)$ per annum
$\therefore$ $A=P+$ $\frac{P\times R\times T}{100}$

$=$ Rs $2000$ + Rs $\frac{2000\times 9\times 5}{100}$

$=$ Rs $2000$ + Rs $900$ = Rs 2900.