The simple interest on ₹800 for 6 years at 5.5% per annum is equal to the simple interest on ₹600 at 4% per annum for a certain period of time. The period of time is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 11 years.
Simple Interest (SI) = (P × R × T) / 100
For the first scenario: SI1 = (800 × 5.5 × 6) / 100 = 264
For the second scenario: SI2 = (600 × 4 × T) / 100 = 24T
SI1 = SI2
264 = 24T
T = 264 / 24 = 11 years