The simple interest on Rs.3500 increases by Rs.1400 when the time increases by 2 years. Find the rate of interest per annum.
Answer & explanation
Correct answer: option 1
The increase in interest is due to time
⇒ \(\frac{3500\;×\;2\;×\;R%}{100}\) = 1400
⇒ rate = 20%