A certain sum of money amounts to ₹1,860 in 2 years and to ₹2,130 in years at simple interest. Find the sum and the rate of interest, respectively.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹1,500, 12%.
According to the given question,
SI for 1.5 years = 2130 - 1860 = 270
SI for 2 years = (270/1.5) × 2 = 360
Sum of money = 1860 - 360 = 1500
Now, SI = PRT/100
⇒ 360 = 1500 × R × 2/100
⇒ R = 360/30
⇒ R = 12%