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 amount will Rs. 800 becomes in 3 years?

  1. Rs. 1020.80

  2. Rs. 1025

  3. Rs. 1052

  4. Data Inadequate
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest = ( 956 - 800 ) = 156, Rate = ( 100 ´ 156 ) / 800 ´ 3 % = 13/2 % New Rate = ( 13/2 + 4 )% = 21/2 % New SI = ( 800 ´ 21/2 ´ 3/100 ) = 252 Therefore new amount = ( 800 + 252 ) = 1052

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