Multiple choice

600 amount to Rs. 740 in 5 years at a certain rate of simple interest. If the rate of interest is increased by 3%, what will be the amount then?

  1. $800$
  2. $856$
  3. $930$
  4. $830$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Original amount: Rs. 600 becomes Rs. 740 in 5 years, so interest = Rs. 140. Rate = (140 × 100) / (600 × 5) = 14000 / 3000 = 4.67% per annum. New rate = 4.67% + 3% = 7.67%. New interest = 600 × 7.67% × 5 = Rs. 230. New amount = 600 + 230 = Rs. 830. The calculation checks out.

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