Multiple choice

Anand deposited Rs. $6000$ on simple interest. He withdraw Rs. $4000$ and its interest from that amount after $2$ years. After next $3$ years, he withdraw the rest of the amount and its interest accured till that time, in all the obtained Rs. $900$ as interest. The rate of interest per annum was

  1. $3\%$
  2. $4\%$
  3. $5\%$
  4. $6\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let R be the rate. Interest for the first 2 years on 6000 is (6000*R*2)/100 = 120R. After withdrawing 4000, 2000 remains for 3 years, earning (2000*R*3)/100 = 60R. Total interest 120R + 60R = 180R = 900, so R = 5%.

AI explanation

Let the annual rate of simple interest be R. The interest earned on the initial Rs. 6000 over the first 2 years is (6000 * 2 * R) / 100 = 120R. Since Anand withdraws Rs. 4000 plus its interest, he leaves the remaining Rs. 2000 in the account to accrue interest for the next 3 years, which totals (2000 * 3 * R) / 100 = 60R. Equating the sum of these two interest components to the total interest received gives 120R + 60R = 900. Solving 180R = 900 yields an interest rate of 5%.

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