Question

A invests Rs 5000 and B invests Rs 10000 at the same rate of interest per annum. At the end of 3 years, B gets Rs 2100 more interest than A. Find the rate of interest.

• A. 11%
• B. 15%
• C. 14%
• D. 12%

Answer 1

The correct option is C

14%

For A:

P = Rs 5000, T = 3 years

Therefore, $I=\frac{PTR}{100}=\frac{5000\times 3\times R}{100}=150$ R

For B:

P = Rs 10000, T = 3 years

Therefore, $I=\frac{PTR}{100}=\frac{10000\times 3\times R}{100}=300$ R

Since, B gets Rs 2100 more interest than A

Therefore, 300R - 150R = Rs 2100

150 R = Rs 2100

Hence, R = $\frac{2100}{150}$ = 14%