A sum of money amounts to ₹7,436 after 6 years and ₹9,460 after 10 years at the same rate of simple interest. Find the rate of interest per annum.
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Correct answer: D
Explanation
The correct answer is option 4 i.e 11.5%.
Interest for 4 years = 9460 - 7436 = ₹2024
Interest per year = 2024 ÷ 4 = ₹506
Total interest for 6 years = 506 × 6 = ₹3036
Principal = 7436 - 3036 = ₹4400
Simple Interest for 1 year = ₹506
Principal = ₹4400
Rate = (506 ÷ 4400) × 100 = 11.5%