Karun borrowed ₹12,000 from Varun and ₹15,000 from Tarun, each for two years at the same rate of simple interest per annum. If he paid an interest of ₹1,680 to Varun at the end of 2 years, then what is the interest that Karun paid to Tarun at the end of the 2-year period?
Answer & explanation
Correct answer: option 3
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
ATQ,
1680 = \(\frac{12000 ×Rate × 2}{100}\)
Rate = 7%
Now ,
Simple interest Paid by karan to Tarun
= \(\frac{15000 ×7 × 2}{100}\)
= Rs. 2100