Question

A sum of ₹4,000 amounts to ₹5,008 in three years at simple interest at the rate of x% per annum. If the interest rate becomes (x + 2.6)%, then the revised maturity amount will be:
1. ₹5,330
2. ₹5,200
3. ₹5,320
4. ₹5,420

Answer 1

Correct Answer - Option 3 : ₹5,320

Given:

Sum = Rs. 4000

Amount in 3 years = Rs. 5008

Formula:

Let P = Principal, R = rate of interest and N = time 

Simple interest = PNR/100

Calculation:

Simple interest in 3 years = 5008 - 4000 =Rs.1008

⇒ 1008 = 4000 × 3 × R/100

⇒ R = 8.4%

Rate of interest is 8.4% per annum.

New rate of interest = 8.4 + 2.6 = 11% per annum

Maturity amount in 3 years = 4000 × 3 × 11/100 + 4000 = Rs. 5320

∴ Revised maturity amount in 3 years is Rs. 5320.