Manish gets Rs 26,000 by investing Rs 20,000 for 5 years at simple interest. Had he invested at a rate 3% higher, how much would he have got in the same time?

ARs 29,000 ✓ Correct

BRs 30,000

CRs 31,000

DRs 28,000

Correct answer: (A) Rs 29,000

Explanation

He would have received Rs 29,000.

Interest earned = 26000 - 20000 = 6000 in 5 years.

Rate = 6000 x 100 / (20000 x 5) = 6%.

At 6 + 3 = 9%, interest = 20000 x 9 x 5 / 100 = 9000.

Amount = 20000 + 9000 = 29000.

Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.