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    A sum of Rs. 800 amounts to Rs. 1,040 in 3 years at simple interest. If the interest rate is increased by 3%, find the amount.
    Question

    A sum of Rs. 800 amounts to Rs. 1,040 in 3 years at simple interest. If the interest rate is increased by 3%, find the amount.

    A.

    1,102

    B.

    1,212

    C.

    1,112

    D.

    1,012

    Correct option is C

    Amount = Rs. 1040

    Principal = Rs. 800

    Simple Interest = 1040- 800 = 240

    Simple Interest= Principal×Time×Rate100\frac{Principal×Time×Rate}{100}​​

    240 = 800×3×Rate100\frac{800×3×Rate}{100}

    Rate = 10%

    New Rate = 3% +10% = 13%

    New SI = 800×13×3100=312\frac{800×13×3}{100} = 312​​

    New Amount = 800+ 312 = 1112

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