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 5 years, Vijay gets ₹480 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. 2.4
Let r be the rate per annum
Interest of Vipul = 5400 × r × 5 ÷ 100
Interest of Vijay = 9400 × r × 5 ÷ 100
Difference = (9400 − 5400) × r × 5 ÷ 100 = 480
4000 × 5 × r ÷ 100 = 480
200 r = 480
r = 480 ÷ 200 = 2.4