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 5 years, Gopal gets ₹600 more interest than Amit, then find the rate of interest per annum (in percentage).
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 3 .
Let rate of interest = R% per annum
SI = P × R × T ÷ 100
Amit’s SI = 5400 × R × 5 ÷ 100 = 270R
Gopal’s SI = 9400 × R × 5 ÷ 100 = 470R
Difference = 470R − 270R = 200R
Given difference = 600
200R = 600
R = 600 ÷ 200 = 3%