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 4 years, Mohan gets ₹360 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. 2.25.
Let the rate be R% per annum.
Simple Interest (SI) = (P × R × T) / 100
Vijay's SI = (5400 × R × 4) / 100 = 216R
Mohan's SI = (9400 × R × 4) / 100 = 376R
Difference = 376R - 216R = 160R
Given: 160R = 360
=> R = 360 / 160 = 2.25