Multiple choice

Neha's Rs. 8000 in 3 years at a fixed simple interest rate becomes Rs. 9200. If the rate of interest was increased by 2%, what amount would he have received?

  1. Rs. 9680

  2. Rs. 8900

  3. Rs. 9800

  4. Rs. 2000
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A Correct answer
Explanation

Simple interest earned = Rs. 9200 - Rs. 8000 = Rs. 1200 over 3 years. Rate = (1200 × 100) / (8000 × 3) = 5%. If rate increases by 2% to 7%, new interest = (8000 × 7 × 3) / 100 = Rs. 1680. Total amount = 8000 + 1680 = Rs. 9680.

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