Rakesh invests a sum of ₹5400 and Shivam invests a sum of ₹10200 at the same rate of simple interest per annum. If, at the end of 4 years, Shivam gets ₹480 more interest than Rakesh, 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. 2.5.
Simple Interest = P × r × t / 100;
Difference = (P2 − P1) × r × t /100
480 = (10200 − 5400) × r × 4 /100
4800 × r × 4 /100 = 480
r = 10/4 = 2.5%