Multiple choice

A sum of $Rs.\ 1500$ amounts to $Rs.\ 3000$ in five years at certain rate of simple intersect. If the rate of interest is increased by $1\%$ the same sum in the same time would amount to:

  1. $Rs.\ 3,288$
  2. $Rs.\ 3,312$
  3. $Rs.\ 3,340$
  4. $Rs.\ 3075$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The original simple interest is Rs. 1500 over five years, so the rate is 20% per year. Increasing the rate to 21% gives interest of Rs. 1575, making the amount Rs. 3075.

AI explanation

The original simple interest earned is Rs. 3000 - Rs. 1500 = Rs. 1500. If the rate increases by 1%, the extra interest earned is 1% of Rs. 1500 for five years, which calculates to (1500 * 1 * 5) / 100 = Rs. 75. Therefore, the new amount is Rs. 3000 + Rs. 75 = Rs. 3075.

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