Question

Mohan invests a sum of ₹5400 and Varun invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 6 years, Varun gets ₹480 more interest than Mohan, then find the rate of interest per annum (in percentage).

• A. 4
• B. 2.5
• C. 3
• D. 2

Answer 1

Answer:

D. 2

We use the simple interest formula:

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

Let the rate = ( R% )

Time ( T = 6 ) years

Difference in principal = ( 9400 - 5400 = 4000 )

Difference in interest = ₹480

So,

$480 = \frac{4000 \times R \times 6}{100}$

480 = 240R

$R = \frac{480}{240} = 2$

Answer: 2% per annum