Multiple choice

Rs. 600 becomes Rs. 708 in 3 years at a certain simple rate of interest. If the rate of interest is increased by 5%, what amount will Rs. 600 become in 3 years?

  1. Rs. 758

  2. Rs. 798

  3. Rs. 804

  4. Rs. 850

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest earned = 708 - 600 = Rs. 108 in 3 years. Original rate = (108 × 100) / (600 × 3) = 6% p.a. New rate = 6 + 5 = 11%. New interest = (600 × 11 × 3) / 100 = Rs. 198. New amount = 600 + 198 = Rs. 798.

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