Multiple choice

A and B borrowed Rs. 4500 and Rs. 5000 respectively at the same rate of interest for 3 Y2 years. If8 paid Rs. 280 more interest than A. Then the rate of interest per annum is

  1. 12 %

  2. 14 %

  3. 16 %

  4. 18 %
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C Correct answer
Explanation

The difference in principal is Rs.500. Using simple interest, 500 x r x 3.5/100 = 280, so r = 16% per annum.

AI explanation

Assuming the time period is 3.5 years and using the Simple Interest formula, the difference in interest generated by the two principals is Rs. 280. Set up the equation as (5000 x R x 3.5) divided by 100 minus (4500 x R x 3.5) divided by 100 equals 280. This simplifies to 500R minus 450R equals 280, so 50R equals 280, which results in a rate of 16% per annum.

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