Multiple choice

Rs. 2000 amounts to Rs. 2600 in five years at a certain rate of simple interest. If interest is 3 % more than the previous rate, then in the same time period, the same sum will amount to

  1. Rs.2700

  2. Rs.2800

  3. Rs.2900

  4. Rs.3000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest earned = Rs. 2600 - Rs. 2000 = Rs. 600 over 5 years. Original rate = (600 × 100)/(2000 × 5) = 6%. New rate = 6% + 3% = 9%. New interest = (2000 × 9 × 5)/100 = Rs. 900. New amount = Rs. 2000 + Rs. 900 = Rs. 2900.

Keep practicing — related questions