Question

Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by 3% , It would amount to how much.

• A. Rs. 992
• B. Rs. 1056
• C. Rs. 1112
• D. Rs. 1182

Answer 1

The correct option is A Rs. 992

Principal = Rs. 800, S.I. = Rs. 120
Time = 3 years

$\therefore Rate=\left(\frac{100\times 120}{800\times 3}\right)\%=5\%$

New rate = 8%, Principal = Rs. 800
Time 3 years

$S.I=Rs.\left(\frac{800\times 8\times 3}{100}\right)=Rs.192$

$\therefore Newamount=Rs.(800+192)=Rs.992$