Vijay invests a sum of ₹5400 and Mohan invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 6 years, Mohan gets ₹600 more interest than Vijay, then find the rate of interest per annum (in percentage).
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 2.5%.
SI = (P × R × T) ÷ 100
Difference in interest = [(9400 − 5400) × R × 6] ÷ 100
600 = (4000 × R × 6) ÷ 100
⇒ 600 = (24000 × R) ÷ 100
⇒ 600 = 240R
⇒ R = 600 ÷ 240
⇒ R = 2.5