Rs. 800 amounts to Rs. 920 in 3 years at simple interest.

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Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by 3% It would amount to how much ?

1. Rs. 1056
2. Rs. 1112
3. Rs. 1182
4. Rs. 992

Correct Option: D

Principal = Rs. 800
S.I. = Rs. (920 - 800) = Rs. 120
and Time = 3 years
∴ Original rate = (100 x SI) / (P x T) = (100 x 120) / ( 800 x 3) = 5%

New rate = 8%
Now, S.I . = Rs.(800 x 8 x 3) /100 = Rs. 192
∴ Amount = Rs. (800 + 192)
= Rs. 992