Atul invests a sum of ₹5400, and Nirmal invests a sum of ₹10200 at the same rate of simple interest per annum. If, at the end of 5 years, Nirmal gets ₹480 more interest than Atul, 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. 2.
SI = (P × R × T) ÷ 100
Let rate = R%
Atul: SI = (5400 × R × 5) ÷ 100 = 270R
Nirmal: SI = (10200 × R × 5) ÷ 100 = 510R
Difference = 510R − 270R = 240R = 480
240R = 480 → R = 480 ÷ 240 = 2%