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. ₹ 6000 — ConceptFor simple interest, interest is directly proportional to the principal, annual rate, and time. The change in interest caused by a rate increase is ΔI…
- A.
₹ 6200
- B.
₹ 7000
- C.
₹ 6500
- 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
Let the deposited amount be P.
Here, ΔI = ₹360, ΔR = 2% per year, and T = 3 years.
Substitute: 360 = P × 2 × 3 / 100.
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.