1.

A sum of Rs. 1200 amounts to Rs. 1740 in 3 years at simple interest. If rate of interest is increased by 3%, then what will be the new amount (in Rs)?1). 18482). 19463). 18124). 1924

Answer»

AMOUNT under Simple Interest (A) = P [1 + (TR/100)]----(1)

Given Principal (P) = Rs. 1200, Amount (A) = Rs.1740, TIME (T) = 3 years

Substituting all the values in Equation 1, we get

1740 = 1200 [1 + (3R/100)]

⇒ [1 + (3R/100)] = (1740/1200)

⇒ (3R/100) = 1.45 - 1

⇒ Rate of Interest (R) = (0.45 × 100)/3 = 45/3 = 15%

Rate of Interest after an increase of 3% = 15% + 3% = 18%

Amount at the NEW rate of Interest = 1200 [1 + (3 × 18)/100)]

⇒ 1200 [1 + (54/100)] = 1200 × (1 + 0.54) = 1200 × (1.54) = Rs. 1848

∴ New Amount = Rs. 1848


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