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?
Answer: Rs. 992
Explanation
Principal amount (P) = Rs. 800
Amount after 3 years (A) = Rs. 920
Interest earned (I) = A - P = 920 - 800 = Rs. 120
Rate of interest (R) = (I / P) x (100 / T) = (120 / 800) x (100 / 3) = 5%
New rate of interest (R') = 5% + 3% = 8%
New interest earned (I') = (P x R' x T) / 100 = (800 x 8 x 3) / 100 = Rs. 192
New amount (A') = P + I' = 800 + 192 = Rs. 992
So, if the interest rate is increased by 3%, the amount would be Rs. 992.
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