A man deposited some amount of money in a bank at some simple rate of interest…

2024

A man deposited some amount of money in a bank at some simple rate of interest for 3 years. Had he deposited the money at 2% higher rate, he would have fetched ₹ 360 more. Find the amount deposited in the bank.

Answer: D. ₹ 6000ConceptFor simple interest, interest is directly proportional to the principal, annual rate, and time. The change in interest caused by a rate increase is ΔI…

  1. A.

    ₹ 6200

  2. B.

    ₹ 7000

  3. C.

    ₹ 6500

  4. D.

    ₹ 6000

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Show answer & explanation

Correct answer: D

Concept

For simple interest, interest is directly proportional to the principal, annual rate, and time.

The change in interest caused by a rate increase is ΔI = P × ΔR × T / 100, where P is the principal.

Application

  1. Let the deposited amount be P.

  2. Here, ΔI = ₹360, ΔR = 2% per year, and T = 3 years.

  3. Substitute: 360 = P × 2 × 3 / 100.

  4. Therefore, P = 360 × 100 / 6 = ₹6,000.

Cross-check

For ₹6,000, the additional simple interest at 2% for 3 years is ₹6,000 × 2 × 3 / 100 = ₹360, which matches the stated increase.

Thus, the amount deposited was ₹6,000.

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