Rs 2000 amounts to Rs 2600 in 5 years at simple interest If the interest rate is increased by ...........

Quantitative Aptitude ( CCS) Simple Interest

Rs. 2000 amounts to Rs. 2600 in 5 years at simple interest. If the interest rate is increased by 3%, it would amount to ?

Rs. 2900

Rs. 3200

Rs. 3600

Rs. 3800

Interest Earned in 5 years = 2600 - 2000 = 600 Rs.

Extra Interest Earned in these 5 years (Due to Increase in Interest Rate) = P*R*T/100 = 2000*3*5/100 = 300 Rs.

So total interest this time = 600 + 300 = 900 Rs.

New Amount = 2000 + 900 = 2900 Rs.

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