A certain sum amounts to ₹3,640 in 2 years and ₹4,060 in 8 years at simple interest. Find the approximate rate percentage per annum?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 2%
A certain sum amounts to ₹3,640 in 2 years and ₹4,060 in 8 years at simple interest.
So, SI in 6 years = 4060 - 3640 = 420
SI in 2 year = 420/6 × 2 = 140
Amount = P + SI
So, in first two years,
3640 = P + 140
P = 3500
140 = (3500 × R × 2)/100
140 = 70R
R = 2%