Ram gets Rs. 2600 for Rs. 2000 in 5 years at some rate of simple interest. Had he invested in other places where rate of simple interest is 3% more than current rate, how much would have Ram got in same time?

Rs. 2900

According to the question:

Simple interest for 5 years = 2600 - 2000 = 600

Simple interest for 1 year = 120

ROI = \(\frac{120 }{ 2000}\) x 100 = 6%

If he had invested in other places with interest rate 3% more i.e. at 9%

Formulae for SI = \(\frac{\text{P Χ R Χ T} }{ 100}\) 

Putting the values in the formulae:

SI = \(\frac{\text{2000 Χ 9 Χ 5} }{ 100}\) 

SI = \(\frac{\text{90000} }{ 100}\) 

SI = 900

The amount which he would have received at the end of 5th year if he had invested at other places with rate of interest 3% higher - Rs. 2900 ( 2000 + 900)