The simple interest earned on ₹7,000 in 2 years at the rate of R% per annum equals to the simple interest earned on ₹5,000 at the rate of 5% per annum in 14 years. The value of R (in percentage) is:
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Correct answer: C
Explanation
The correct answer is option 3 i.e. 25%.
Simple Interest (SI) = (P × R × T)/100
Simple Interest on ₹7,000 for 2 years at R% per annum = Simple Interest on ₹5,000 for 14 years at 5% per annum
⇒ (7000 × R × 2)/100 = (5000 × 5 × 14)/100
⇒ 14000R/100 = 350000/100
⇒ 14000R/100 = 3500
⇒ 140R = 3500
⇒ R = 3500/140 = 25