Question

The simple interest on Rs. 4000 in 3 years at the rate of x % per annum equals the simple interest on Rs. 5000 at the rate of 12% per annum in 2 years. The value of x is ________

1. 10
2. 22
3. 18
4. 24

Answer 1

Correct Answer - Option 1 : 10

Given:

P₁ = 5000, R₁ = 12%, Time = 2 years

P₂ = 4000, R₂ = x%, Time = 3 years

Formula used:

Simple interest = (principal amount × rate of interest × time)/100

Calculation:

Simple interest is same

(P2 × R2 × T2)/100 = (P₁ × R1 × T1)/100

⇒ (4000 × 3 × X)/100 = (5000 × 12 × 2)/100

⇒ X = (5000 × 12 × 2)/4000 × 3

⇒ X = 10%

∴The rate of 10% per annum