# QA – Placement Quizzes | Simple Interest | Question 2

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?

(A)

Rs 1015

(B)

Rs 1016

(C)

Rs 1025

(D)

Rs 1102

Explanation:

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.

Quiz of this Question
Please comment below if you find anything wrong in the above post

Whether you're preparing for your first job interview or aiming to upskill in this ever-evolving tech landscape, GeeksforGeeks Courses are your key to success. We provide top-quality content at affordable prices, all geared towards accelerating your growth in a time-bound manner. Join the millions we've already empowered, and we're here to do the same for you. Don't miss out - check it out now!