With a given rate of simple interest, the ratio of principal and amount for a certain period of time is 3 : 4 . After 2 years, with the same rate of interest, the ratio of the principal and amount becomes 5 : 6 . The rate of interest is?
Answer & explanation
Correct answer: option 2
P : A ⇒ P : A
3 : 4 after 2 years 5 : 6
Since P remains same
15: 20 15 : 18
20 - 18 = 2 ( in 2 years)
SI in 1 year = \(\frac{2}{2}\) = 1
Rate = \(\frac{1}{15}\) × 100 % = 6\(\frac{2}{3}\)%