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
Answer: (B)
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