Question
Ankit borrowed Rs.1800 from a loan company. At a certain
rate of simple interest, the total amount becomes Rs.2124 after 3 years. If the rate of interest is increased by 50% while keeping the time period the same, what will be the new total amount?Solution
Amount borrowed = Rs.1800
Amount after 3 years = Rs.2124
Simple interest for 3 years = 2124 - 1800 = Rs.324
So, rate of interest = (324*100)/ (1800* 3) = 6%
New rate of interest = 6 * 1.5 = 9%
Simple interest on Rs.1800 at 9% for3 years = 1800* 9* 3/100 = Rs.486
Required amount = 486 + 1800 = Rs.2286
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