In how many years, The simple interest earned on Rs. 6000 at an interest rate of 5% per annum will be equal to the simple interest earned on Rs. 2000 at the rate of 4% per annum for 30 years?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 8 years.
The interest earned on a sum of Rs 2000 at the rate of 4% per annum for 30 years
S.I. = {Principal × Interest × Time}/100
⇒ {2000 × 4 × 30}/100 = 2400
Let the number of years it will take to earn an interest of Rs 2400 on a sum of Rs 6000 at an interest rate of 5%
S.I. = {Principal × Interest × Time}/100 = 2400
⇒ {6000 × 5 × Time}/100 = 2400
Time = 8 years