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 4 years, Gopal gets ₹480 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. 3.
SI = (P × R × T) / 100
Let rate = R%
Amit's SI = (5400 × R × 4) / 100 = 216R
Gopal's SI = (9400 × R × 4) / 100 = 376R
Gopal gets ₹480 more:
376R − 216R = 480
⇒ 160R = 480
⇒ R = 480 ÷ 160 = 3