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An amount of Rs. 3000 becomes Rs. 3600 in four years at simple interest. If the rate of interest was 1% more, then what was be the total amount?

  • A.Rs. 3800
  • B.Rs. 3780
  • C.Rs. 3720
  • D.Cannot be determined

Answer: C

A = P(1 + TR/100)

=> 3600 = 3000[1 + (4 * R)/100] => R = 5%

Now R = 6%

=> A = 3000[1 + (4 * 6)/100] = Rs. 3720.

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