Multiple choice

A sum of Rs. 2,400 amounts to Rs. 3,264 in 4 years at a certain rate of simple interest. What will be the final amount received for the same period, if the rate of interest is increased by 1%?

  1. Rs. 3,260

  2. Rs. 3,310

  3. Rs. 3,360

  4. Rs. 3,460
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Original interest earned = 3264 - 2400 = 864. Rate = (864 * 100) / (2400 * 4) = 9%. New rate = 10%. New interest = (2400 * 10 * 4) / 100 = 960. New amount = 2400 + 960 = 3360.

AI explanation

First, find the original simple interest by subtracting the principal from the amount: 3264 minus 2400 equals Rs. 864. The additional interest from a 1% rate increase over 4 years is calculated as 1% of 2400 multiplied by 4, which equals Rs. 96. Adding this extra interest to the original amount gives the new amount: 3264 plus 96 equals Rs. 3360.

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