Mukund invests a sum of ₹5400 and Sachin invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 5 years, Sachin gets ₹960 more interest than Mukund, 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. 4.8.
Mukund’s principal = ₹5400
Sachin’s principal = ₹9400
Time = 5 years
Difference in interest = ₹960
Difference = (Difference in principal) × Rate × Time / 100
⇒ 960 = (9400 - 5400) × R × 5 / 100
⇒ 960 = 4000 × R × 5 / 100
⇒ 960 = 200R
R = 960 / 200 = 4.8%