Multiple choice

If the interest on Rs.2,400 be more than the interest on Rs.2,000 by Rs. 60 in 3 years at the same rate per cent; find the rate.

  1. 2 %

  2. 3 %

  3. 4 %

  4. 5 %
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest formula: I = PRT/100. Difference in interest = (P2 - P1) * R * T / 100. 60 = (2400 - 2000) * R * 3 / 100. 60 = 400 * R * 3 / 100. 60 = 12 * R. R = 5%.

AI explanation

Using the simple interest formula, the difference in interest is Rs. 60 over 3 years, meaning the annual interest difference is 60 divided by 3, which equals Rs. 20. This Rs. 20 difference is the interest on the principal difference of 2400 minus 2000, equaling Rs. 400. The rate of interest is calculated as (20 times 100) divided by 400, giving 5 percent. The rate is 5 percent.

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