Multiple choice general knowledge math & puzzles

Two equal sums were lent at simple interest for 4 years and for 3 years respectively. The rate of interest in the latter case was 3% higher than that one the former case, but the amount in each was Rs. 1088. The rate of interest in the former case was:

  1. 8

  2. 9

  3. 12

  4. 7

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let P be the principal and r be the first rate. Amount A = P(1 + rt/100). So, P(1 + 4r/100) = 1088 and P(1 + 3(r+3)/100) = 1088. Solving these equations yields r = 9%. The other options do not satisfy the equal amount condition.