At a certain rate of simple interest Rs. 1600 amounted to Rs. 2080 in 5 years. If the rate of interest is decreased by 3%, what will be the amount after 5 years?
Answer & explanation
Correct answer: option 3
S.I. in 5 years = ₨.2080 - ₨.1600
= ₨.480
S.I. in 1 year = \(\frac{480}{5}\)
= ₨.96
rate of interest = \(\frac{96}{1600}\) x 100
= 6 %
new rate of interest = 6 - 3 = 3%
Amount @3% = 1600 + \(\frac{1600X3X5}{100}\)
= 1600 + 240
= ₨., 1840