A sum amounts to ₹6,600 in 2 years and ₹7,200 in 4 years at simple interest. What is the rate of interest per annum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 5%.
SI for 2 years = 7200 – 6600 = 600
Principal = 6600 – 600 = 6000
SI = (P × R × T)/100
⇒ 600 = (6000 × R × 2)/100
⇒ 600 = 120R
⇒ R = 5%