If the simple interest on ₹7,200 in 3 years at the rate of 16% per annum equals the simple interest on ₹9,600 at the rate of x% per annum in 4 years. The value of x is equal to:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 9.
Simple Interest = (P × R × T)/100
Where, P = Principal; R = Rate of interest per annum; T = Total time
Principal = ₹7200
Rate = 16% per annum
Time = 3 years
Simple Interest (SI) = (7200 × 16 × 3)/100 = 3456
Principal = 9600
Rate = x% per annum
Time = 4 years
Simple Interest (SI) = (9600 × x × 4)/100 = 384x
So, 384x = 3456
⇒ x = 3456/384 = 9
Therefore, the value of x is 9%.