Question

Rs.800 becomes Rs.956 in 3 years at certain rate of simple interest. If the rate of interest is increased by 3%,What amount will Rs.800 becomes in 3 years?

• A. 1,028
• B. 1,128
• C. 1,228
• D. 1,328

Answer 1

Answer:

A. 1,028

Let’s solve it step by step.

Step 1:

Find the original rate of interest Simple Interest (SI) formula:

$SI = \frac{P \times R \times T}{100}$

Given:

* Principal (P) = 800

* Amount = 956

* Time (T) = 3 years

So, $SI = 956 - 800 = 156$

Now, $156 = \frac{800 \times R \times 3}{100}$

$156 = 24R$

$R = \frac{156}{24} = 6.5\%$

Step 2: Increase rate by 3%

New rate =$6.5\% + 3\% = 9.5\%$

Step 3:

Find new amount $SI = \frac{800 \times 9.5 \times 3}{100}= 228$

New Amount = $800 + 228 = 1028$