Varun invests a sum of ₹5400 and Ashish invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 3 years, Ashish gets ₹960 more interest than Varun, then find the rate of interest per annum (in percentage).
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 8.
Let rate = R%
Time = 3 years
Interest = (Principal × Rate × Time) / 100
Interest difference = ₹960
So: (9400 × R × 3)/100 − (5400 × R × 3)/100 = 960
→ (3R/100) × (9400 − 5400) = 960
→ (3R/100) × 4000 = 960
→ 12000R / 100 = 960
→ 120R = 960
→ R = 8