Multiple choice

If simple interest on Rs. 5000 for 3 years and at the rate of 2% per annum is more than simple interest on Rs. 2000 for 4 years at a certain rate per annum by Rs. 60, then what is the rate of interest?

  1. 4%

  2. 2%

  3. 3%

  4. 5%

  5. 3.5%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest 1 = (5000 * 3 * 2) / 100 = 300. Simple interest 2 = (2000 * 4 * R) / 100 = 80R. Given 300 - 80R = 60, then 80R = 240, so R = 3%.

AI explanation

The simple interest on Rs. 5000 for 3 years at 2% is calculated as (5000 times 2 times 3)/100 = 300. Let the unknown rate be R for the second sum, so its interest is (2000 times R times 4)/100 = 80R. The difference given by the problem is 300 - 80R = 60, which means 80R = 240. Solving for R gives a rate of interest of 3%.

Keep practicing — related questions