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  1. A sum of 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 the same sum become in 3 years ?
    1. Rs. 1025
    2. RS. 1042
    3. Rs. 1052
    4. Rs. 1024
Correct Option: C

According to question ,
S.I. = Amount - Principal = 956 – 800 = Rs. 156

∴ Rate =
Interest × 100
Principal × Time

Rate =
156 × 100
= 6.5%
800 × 3

New rate = (6.5 + 4)% = 10.5%
S.I =
Principal × Time × Rate
100

SI =
800 × 3 × 10.50
= Rs. 252
100

∴ Amount = Principal + SI = Rs.(800 + 252) = Rs.1052



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