Question

Amit invests a sum of INR 5400 and Gopal invests a sum of INR 9400 at the same rate of simple interest per annum. If, at the end of 4 years, Gopal gets INR 480 more interest than Amit, then find the rate of interest per annum (in percentage).

• A. 5
• B. 3
• C. 2
• D. 4

Answer 1

Answer:

B. 3

Let the rate of simple interest = R% per annum.

Simple Interest formula

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

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Amit’s interest (4 years)

$\text{SI}_A = \frac{5400 \times R \times 4}{100} = 216R$

Gopal’s interest (4 years)

$\text{SI}_G = \frac{9400 \times R \times 4}{100} = 376R$

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Gopal gets ₹480 more interest than Amit:
$376R - 216R = 480$
$160R = 480$
$R = 3$

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Rate of interest = 3% per annum