Mohan invests a sum of ₹5400 and Varun invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 6 years, Varun gets ₹480 more interest than Mohan, then find the rate of interest per annum (in percentage)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 2.
SI = P × R × T ÷ 100
Difference of SI ⇒ (9400 – 5400) × R × 6 ÷ 100 = 480
⇒ 4000 × R × 6 ÷ 100 = 480
⇒ 24000 R ÷ 100 = 480
⇒ 240 R = 480
⇒ R = 2%