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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 ?
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- Rs. 1025
- RS. 1042
- Rs. 1052
- Rs. 1024
- Rs. 1025
Correct Option: C
According to question ,
S.I. = Amount - Principal = 956 – 800 = Rs. 156
| ∴ Rate = | |
| Principal × Time |
| Rate = | = 6.5% | |
| 800 × 3 |
New rate = (6.5 + 4)% = 10.5%
| S.I = | |
| 100 |
| SI = | = Rs. 252 | |
| 100 |
∴ Amount = Principal + SI = Rs.(800 + 252) = Rs.1052