Multiple choice

A sum of Rs. 800 amounts to Rs. 920 in 3 years at the simple interest rate. How much would it amount to in the same time period if the rate is increased by 3% per annum?

  1. Rs. 992

  2. Rs. 962

  3. Rs. 942

  4. Rs. 982
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Original interest = 920 - 800 = 120 for 3 years. Rate = 120 / (800 * 3) * 100 = 5%. New rate = 8%. New interest = 800 * 8 * 3 / 100 = 192. New amount = 800 + 192 = 992.

AI explanation

Using the simple interest formula, the interest for 3 years is 920 minus 800, which is Rs. 120, making the annual interest Rs. 40. If the rate increases by 3%, the new annual interest on Rs. 800 becomes 40 plus 3% of 800, which is 40 + 24 = Rs. 64. Over 3 years, this totals 64 times 3 = Rs. 192, so the new amount is 800 + 192 = Rs. 992.

Keep practicing — related questions