A sum was put at simple interest at certain rate for 3 years. Had it been put…
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A sum was put at simple interest at certain rate for 3 years. Had it been put 1% higher rate it would have fetched Rs 63 more. The sum is :
- A.
Rs 2200
- B.
Rs 2480
- C.
Rs 2400
- D.
Rs 2100
Attempted by 72 students.
Show answer & explanation
Correct answer: D
Answer: Rs. 2100
Let the principal be P and the original simple interest rate be r% per annum.
Interest for 3 years at r% = P * r * 3 / 100. Interest for 3 years at (r + 1)% = P * (r + 1) * 3 / 100.
The difference between these two interests = P * ( (r + 1) - r ) * 3 / 100 = P * 3 / 100.
Given this difference equals 63, so P * 3 / 100 = 63.
Solve for P: P = 63 * 100 / 3 = 63 * 100 / 3 = 2100.
Therefore the sum is Rs. 2100.