Multiple choice

Simran lent Rs. 8000 to Piyush for 4 years and Rs. 4000 to Ishmeet for 2 years on Simple Interest at same rate of interest and received Rs. 2640 in total from both the persons as interest. What is the rate of interest per annum?

  1. 5.4%

  2. 5.6%

  3. 6.6 %

  4. 12.5%

  5. 13.6%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let R be the rate. Simple interest = (P * R * T) / 100. (8000 * R * 4)/100 + (4000 * R * 2)/100 = 2640. 320R + 80R = 2640. 400R = 2640. R = 2640 / 400 = 6.6%.

AI explanation

Using the simple interest formula, the total interest is the sum of (8000 multiplied by the rate multiplied by 4 divided by 100) and (4000 multiplied by the rate multiplied by 2 divided by 100). This equation simplifies to 320 times the rate plus 80 times the rate, equaling 2640, so 400 times the rate equals 2640. Solving this gives the rate as 6.6%.

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