Amit invests a sum of ₹5400 and Gopal invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 6 years, Gopal gets ₹960 more interest than Amit, then find the rate of interest per annum (in percentage).
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 4.
Difference in principal = 9400 − 5400 = 4000
Difference in interest for 6 years = 960
Simple interest difference formula → (P × R × T) / 100
So, (4000 × R × 6) / 100 = 960
240R = 960
R = 4% per annum