Nirmal invests a sum of ₹5400 and Rakesh invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 5 years, Rakesh gets ₹360 more interest than Nirmal, 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. 1.8.
Let rate = R%
Simple Interest = (P × R × T) / 100
Time = 5 years
Interest by Rakesh − Interest by Nirmal = ₹360
So: (9400 × R × 5)/100 − (5400 × R × 5)/100 = 360
→ (5R/100) × (9400 − 5400) = 360
→ (5R/100) × 4000 = 360
→ (20000R / 100) = 360
→ 200R = 360
→ R = 1.8%