The simple interest on Rs 1350 for 2 years is Rs 20 more than the simple interest on Rs 1250 for 2 years at the same rate. Find the rate of interest per annum.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 10%
With the same rate and time, the difference in interest is the interest on the difference of the principals.
Difference of the principals \(=1350-1250=\) Rs 100
Interest on Rs 100 for 2 years \(=\) Rs 20
\(\displaystyle \frac{100\times R\times2}{100}=20\), so \(2R=20\)
\(R=10\)
The rate of interest is 10% per annum.