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QA – Placement Quizzes | Simple Interest | Question 2

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James deposits a sum of Rs 800 that will amount to Rs 920 in 3 years. However, the bank decides to increase the interest rate by 4%. What amount will he receive now?


Rs 1015


Rs 1016


Rs 1025


Rs 1102

Answer: (B)


James gets simple interest (SI) = Rs 920-800 = Rs 120. 

Here, Principal (P) = Rs 800 and Time (T) = 3 years. 

We know, Rate (R) = (100×SI)/(P×T) = (100×120)/(800×3) = 5%. 

Given, New Rate = 9%. So, New Interest = P×R×T = 800×0.09×3 = Rs 216. 

Therefore, James will get Rs (800+216) = Rs 1016.

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Last Updated : 28 Jun, 2021
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