Chetan invests a sum of ₹5400 and Vipul invests a sum of ₹10200 at the same rate of simple interest per annum. If, at the end of 3 years, Vipul gets ₹720 more interest than Chetan, then find the rate of interest per annum (in percentage).
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 5 .
SI = (Principal × Rate × Time) ÷ 100
Let rate of interest = R% per annum
Chetan's SI = 5400 × 3 × R ÷ 100 = 162R
Vipul's SI = 10200 × 3 × R ÷ 100 = 306R
Difference of SI = 306R − 162R = 144R
144R = 720
R = 720 ÷ 144 = 5