Multiple choice

$Rs.\,800$ becomes $Rs.\,956$ in $3$ years at a certain rate of simple interest. If the rate of interest is increased by $4\%$, what will $Rs.\,800$ amount to in $3$ years?

  1. $\;Rs.\,1020.80$
  2. $\;Rs.\,1025$
  3. $\;Rs.\,1052$
  4. $\;Rs.\,1050$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Original interest = 956 - 800 = 156 for 3 years. Rate r = (156 * 100) / (800 * 3) = 6.5%. New rate = 6.5 + 4 = 10.5%. New interest = (800 * 10.5 * 3) / 100 = 252. New amount = 800 + 252 = 1052.

AI explanation

The initial interest earned is 956 minus 800 = Rs. 156. If the rate increases by 4%, the additional interest for 3 years is calculated as (800 x 4 x 3) / 100 = Rs. 96. Adding this extra interest to the original total amount gives 956 + 96 = Rs. 1052.

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