Vipul invests a sum of ₹5400 and Vijay invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 4 years, Vijay gets ₹840 more interest than Vipul, 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. 5.25.
Simple interest = (P × R × T) / 100
Vipul’s interest = (5400 × R × 4) / 100 = 216R
Vijay’s interest = (9400 × R × 4) / 100 = 376R
Difference = 376R − 216R = 160R
So, 160R = 840
R = 840 ÷ 160 = 5.25