Gopal invests a sum of ₹5400 and Akshay invests a sum of ₹10200 at the same rate of simple interest per annum. If, at the end of 4 years, Akshay gets ₹720 more interest than Gopal, 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. 3.75.
Let rate = r%
Interest difference = 720
Time = 4 years
Interest = (Principal × Rate × Time) / 100
Difference: (10200 × r × 4)/100 – (5400 × r × 4)/100 = 720
(40800r – 21600r)/100 = 720
19200r / 100 = 720
192r = 720
r = 720 ÷ 192 = 3.75%