If the simple interest at the same interest rate on ₹500 for 4 years and ₹700 for 2 years, combined together, is ₹280, then what is the rate of interest?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. %
Let the interest rate be R% per annum
Given that
The simple interest at the same interest rate on ₹500 for 4 years and ₹700 for 2 years, combined together, is ₹280
Formula used
S.I. = (Principal × Rate × Time)/100
Calculation
280 = (500 × R × 4)/100 + (700 × R × 2)/100
280 = 20R + 14R = 34R
R = 280/34 = % per annum