Correct Answer - Option 1 : 1800
Given
In a certain time Rs. 1200 becomes Rs. 1560 at 10% PA simple interest
Given
SI = (P × R × T)/100
SI = Simple interest
P = Principal
R = Rate
T = Time
SI = Amount - Principal
Calculation
SI = 1560 - 1200 = 360
⇒ 360 = (1200 × 10 T)/100
⇒ T = 3 years
⇒ New rate of interest for 3 years = 3 × 8
⇒ 24%
⇒ New Amount = 2232
⇒ 124% = 2232
⇒ 1% = 18
⇒ 100% = 1800
∴ The principal amount that will become Rs. 2232 at 8% PA in the same time is Rs.1800