Question : The amount Rs. 2,100 became Rs. 2,352 in 2 years at Simple Interest. If the interest rate is decreased by 1%, what is the new interest?
Option 1: Rs. 210
Option 2: Rs. 220
Option 3: Rs. 242
Option 4: Rs. 252
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Correct Answer: Rs. 210
Solution :
Given: The amount Rs. 2,100 became Rs. 2,352 in 2 years at Simple Interest and the interest rate is decreased by 1%.
1% rate decrease for 1 year.
So, the total decrease for 2 years is 2%.
Now, 2% of 2100 is = $2100×\frac{2}{100}$ = Rs. 42
Also, total interest = (2352 – 2100) = Rs. 252
$\therefore$ The new interest = (252 – 42) = Rs. 210
Hence, the correct answer is Rs. 210.
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