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 3 years, Gopal gets ₹840 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. 7.
Let rate = R%
Simple Interest (SI) = (P × R × T) / 100
Difference in SI = 840
Time = 3 years
Gopal’s SI − Amit’s SI = 840
=> (9400 × R × 3)/100 − (5400 × R × 3)/100 = 840
=> (4000 × R × 3)/100 = 840
=> (12000 × R)/100 = 840
=> 120R = 840
=> R = 7%