Simple Interest Calculation Steps
The problem involves calculating the final amount after a simple interest rate increase.
Initial Values:
- Principal (P): ₹800
- Amount (A): ₹920
- Time (T): 3 years
Step 1: Calculate Initial Simple Interest (SI)
Simple Interest is the difference between the final amount and the principal.
$SI = A - P$
$SI = ₹920 - ₹800 = ₹120$
Step 2: Calculate the Initial Rate of Interest (R)
Using the simple interest formula: $SI = (P × R × T) / 100$
$120 = \frac{800 \times R \times 3}{100}$
$120 = 8 \times R \times 3$
$120 = 24 \times R$
$R = \frac{120}{24} = 5\%$
The initial rate of interest is 5% per annum.
Step 3: Calculate the New Rate of Interest
The interest rate is increased by 4%.
$New Rate (R_new) = Initial Rate (R) + 4%$
$R_new = 5\% + 4\% = 9\%$
Step 4: Calculate the New Simple Interest (SI_new)
Using the new rate (9%) with the same principal and time.
$SI_{new} = \frac{P \times R_{new} \times T}{100}$
$SI_{new} = \frac{800 \times 9 \times 3}{100}$
$SI_{new} = 8 \times 9 \times 3$
$SI_{new} = ₹216$
Step 5: Calculate the New Amount
The new amount is the sum of the principal and the new simple interest.
$New Amount (A_new) = P + SI_new$
$A_{new} = ₹800 + ₹216$
$A_{new} = ₹1016$
Similar Questions
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- A man purchases a washing machine for $₹12,000$. He pays $₹2,000$ at first and the rest after $1\text{ year}$, on which he is charged a simple interest at the rate of $10\%$ per year. The total amount he pays for the washing machine is:
- Sapna invested ₹21,700 on simple interest, partly at 3% per annum and partly at 12% per annum. If she earns equal interests from the two investments after 7 years, then find the sum invested at 3% per annum (in ₹).
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Important Questions from Simple Interest
Anil lent a sum of Rs. 5,000 on simple interest for 10 years in such a way that the rate of interest is 6% per annum for the first 2 years, 8% per anmum for the next 2 years and 10% per annum beyond 4 years. How much interest (in Rs.) will he earn at the end of 10 years?
What will be the simple interest on a sum of Rs. 12000 at the rate of 15 percent per annum for three years ?
If in 13 years fixed sum doubles at simple interest, what will be the interest rate per year? (correct to two decimal places)
On simple interest a sum of Rs. 640 becomes Rs. 832 in 2 years. What will Rs. 860 become in 4 years at the same rate of simple interest?
A certain sum amounts to Rs. 81840 in 3 years and to Rs. 92400 in 5 years at x% p.a. under simple interest. If the rate of interest is becomes (x + 2)%, then in how many years will the same sum double itself?
