A sum of Rs. 800 amounts to Rs. 920 in 3 years at the simple

Home » Aptitude » Simple interest » Question

A sum of Rs. 800 amounts to Rs. 920 in 3 years at the simple interest rate. If the rate is increased by 3% p.a., what will be the sum amount to in the same period ?

Case I,
Here , Principal = ₹ 800 , Amount = ₹ 920
S.I. = Amount - Principal = 920 – 800 = ₹ 120

Rate =	Interest × 100
	Principal × Time

=	120 × 100	= 5% per annum
	800 × 3

Case II,
Rate = 8% per annum

S.I. =	800 × 8 × 3	= ₹ 192
	800 × 3

∴ Amount = Principal + S.I. = (800 + 192) = ₹ 992