Question

$Rs.800$ becomes $Rs.956$ in $3$ years at a certain rate of simple interest. If the rate of interest is increased by $4\%$, what will $Rs.800$ amount to in $3$ years?

• A. $Rs.1020.80$
• B. $Rs.1025$
• C. $Rs.1052$
• D. $Rs.1050$

Answer 1

Answer: (C)

$Rs.1052$

(c) Principal $=Rs.800$, Amount $=Rs.956$
$\Rightarrow S.I.=Rs.956-Rs.800=Rs.156$
Time $=3$ years $\therefore Rate\%p.a.=\frac{156\times 100}{800\times 3}=6.5$.
Now, Principal $=Rs.800,Rate\%p.a.=10.5$, Time $=3$ years
$\therefore$ Amount $=Rs.800+Rs.\left(\begin{array}{c}\frac{800\times 10.5\times 3}{100}\end{array}\right)$
$=Rs.800+Rs.252=Rs.1052$.