1.

A sum of Rs. 9000 brings simple interest of Rs. 2970 in three years. If the interest rate is increased by 2%, what will be the interest in three years on the same capital?1). Rs. 35202). Rs. 35103). Rs. 35404). Rs. 3550

Answer»

Given,

P = Rs.9000, N = 3YEARS and SIMPLE INTEREST = Rs. 2970

Using simple interest formula,

Let P = principle, N = time and R = rate percent per annum

Simple interest = (P × N × R)/100

⇒ 2970 = (9000 × 3 × R)/100

⇒ 270 × R = 2970

⇒ R = 11

Rate of interest = 11%

Given,

If the interest rate is INCREASED by 2%, then

New interest rate =

= 11 + 2

= 13%

Using simple interest formula,

Simple interest = (9000 × 3 × 13)/100

= 3510

∴ the simple interest in three years on the same capital is Rs. 3510.



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