MAT Exam 2022 Paper

Concept:Simple interest depends on both principal and rate. Without knowing the principal separately, the new interest cannot be found.Explanation:Use the formula for simple interest:$$\text{S.I.} = \frac{P \times R \times T}{100}$$Given: $T = 8$ years and S.I. $= ₹2550$.$$2550 = \frac{P \times R \times 8}{100}$$This gives:$$PR = \frac{2550 \times 100}{8}$$If the rate is increased by $3\%$, the new rate is $R + 3$.New interest $= \frac{P \times (R+3) \times 8}{100}$$$= \frac{8(PR + 3P)}{100}$$Here, we know the product $PR$, but we do not know the value of $P$ separately.Therefore, the new interest cannot be uniquely determined from the given data.Answer:D. Can't be determined