Shivam invests a sum of ₹5400 and Rupesh invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 4 years, Rupesh gets ₹600 more interest than Shivam, then find the rate of interest per annum (in percentage).
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 3.75.
Let rate of interest = R% per annum
SI = (P × R × T) ÷ 100
Shivam’s SI = (5400 × R × 4) ÷ 100 = 216R
Rupesh’s SI = (9400 × R × 4) ÷ 100 = 376R
Difference in SI = 376R − 216R = 160R
Given difference = 600
160R = 600
R = 600 ÷ 160 = 3.75