Amit invests a sum of ₹5400 and Gopal invests a sum of ₹10200 at the same rate of simple interest per annum. If, at the end of 4 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. 5.
Simple interest difference = (10200 − 5400) × r × 4 ÷ 100
Difference = 4800 × r × 4 ÷ 100 = 19200 × r ÷ 100 = 192 × r
⇒ 192 × r = 960
⇒ r = 960 ÷ 192 = 5