Question

Amit invests a sum of ₹5400 and Gopal invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 6 years, Gopal gets ₹960 more interest than Amit, then find the rate of interest per annum (in percentage).

• A. 6
• B. 3
• C. 4
• D. 2

Answer 1

Answer:

C. 4

Difference in principal amounts:

$9400 - 5400 = 4000$

Difference in simple interest after 6 years is ₹960.

Using the simple interest formula:

$\text{SI}=\frac{P \times R \times T}{100}$

So,

$\frac{4000 \times R \times 6}{100}=960$

$240R=960$

$R=\frac{960}{240}=4$

Therefore, the rate of interest per annum is:

$=\boxed{4\%}$