TestUstad

Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by 3%, it would amount to how much ?

Correct answer: A. Rs. 992

  • A. Rs. 992
  • B. Rs. 1112
  • C. Rs. 1056
  • D. Rs. 1182Educational Resources

Explanation

The interest earned is Rs. 920 - Rs. 800 = Rs. 120 in 3 years, so the rate is Rs. 120/(Rs. 800 x 3 years) = 5% per annum. Increasing this by 3 percentage points gives 8% per annum, and the new amount is Rs. 800 x (1 + 0.08 x 3) = Rs. 992. The likely trap is Rs. 1056, which uses 8% as a one-year addition rather than applying it for 3 years.

Written and checked by , MS Computer ScienceLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? [email protected]

About Profit and Loss

Profit and loss compare the cost price and selling price of an item, using profit or loss percentages based on the cost price unless stated otherwise. Questions include marked price, discount, successive discounts, commission, and finding an unknown price, with care needed to distinguish discount from loss.

Practise Arithmetic

1,060 free Arithmetic MCQs from Mathematics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Start a free Arithmetic testAll Arithmetic MCQs

Discussion

Stuck on an option, or know a faster way to get there? Ask or explain it here.

No comments yet. Be the first to explain this one.

Exams that ask Mathematics questions like this

Mathematics is on 76 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Lecturer Mathematics Test Mathematics80 MCQsNET Mathematics80 MCQsSubject Specialist Mathematics Test Mathematics80 MCQsATS Mathematics30 MCQsCA QAT Mathematics30 MCQsCTS Mathematics30 MCQsECAT Mathematics30 MCQsETEA Engineering Admission Test Mathematics30 MCQsETEA Recruitment Tests Mathematics30 MCQsGAT General Mathematics30 MCQsGIKI Mathematics30 MCQsNAT Mathematics30 MCQsNED Mathematics30 MCQsNTS Mathematics30 MCQsOTS Mathematics30 MCQsPIEAS Mathematics30 MCQsPTS Mathematics30 MCQsSTS Mathematics30 MCQsUTS Mathematics30 MCQsBCAT Mathematics25 MCQsISSB Mathematics25 MCQsCSS MPT Mathematics20 MCQsPAF Mathematics20 MCQsPAF Airman Mathematics20 MCQsPakistan Army Commissioned Officer Test Mathematics20 MCQsPakistan Navy Test Mathematics20 MCQsPatwari Test Mathematics20 MCQsPMA Long Course Test Mathematics20 MCQsPMD Mathematics20 MCQsComputer Operator Test Mathematics15 MCQsDEO Mathematics15 MCQsEducators ESE Test Mathematics15 MCQsEducators SESE Test Mathematics15 MCQsEducators SST Test Mathematics15 MCQsFBR Mathematics15 MCQsJEST Mathematics15 MCQsJunior Clerk Test Mathematics15 MCQsLAT Mathematics15 MCQsNADRA Mathematics15 MCQsPST Mathematics15 MCQsSub Registrar Test Mathematics15 MCQsAJKPSC Mathematics10 MCQsAssistant BS-16 Test Mathematics10 MCQsBPSC Mathematics10 MCQsECP Mathematics10 MCQsFIA Mathematics10 MCQsFPSC Mathematics10 MCQsGBPSC Mathematics10 MCQsIB Mathematics10 MCQsIntelligence Officer Mathematics10 MCQsKPPSC Mathematics10 MCQsMES Mathematics10 MCQsNAB Mathematics10 MCQsNational Highways and Motorway Police Test Mathematics10 MCQsPakistan Railways Recruitment Test Mathematics10 MCQsPCS Mathematics10 MCQsPIA Mathematics10 MCQsPPSC Mathematics10 MCQsPunjab Police ASI Test Mathematics10 MCQsPunjab Police Sub Inspector Test Mathematics10 MCQsSNGPL Mathematics10 MCQsSPSC Mathematics10 MCQsSub Engineer Civil Test Mathematics10 MCQsSub Engineer Electrical Test Mathematics10 MCQsSub Engineer Mechanical Test Mathematics10 MCQsTehsildar and Naib Tehsildar Test Mathematics10 MCQsWAPDA Mathematics10 MCQsANF Mathematics5 MCQsASF Mathematics5 MCQsCTD Mathematics5 MCQsElite Police Force Test Mathematics5 MCQsPakistan Army Soldier Test Mathematics5 MCQsPakistan Rangers Test Mathematics5 MCQsPERA Force Test Mathematics5 MCQsPunjab Police Constable Test Mathematics5 MCQsRescue 1122 Test Mathematics5 MCQs

More Profit and Loss questions

A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:

The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:_________?

A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest 12% per annum, how much cash should he pay?

A sum was put a simple interest at a certain rate for 2 years. Had it been put at 4% higher rate, it would have fetched Rs. 60 more. The sum is:

A man invests a certain sum of money at 6% per annum simple interest and another sum at 7% per annum simple interest. His income from interest after 2 years was Rs. 354. One-forth of the first sum is equal to one-fifth of the second sum. The total sum invested was :

You deposit $600 into a 6 month certificate of deposit. After 6 months the balance is $618. Find the simple annual interest rate