In how many years, The simple interest earned on Rs. 6000 at an interest rate of 5% per annum will be equal to simple interest earned on Rs. 2000 at the rate of 4% per annum for 30 years?
Answer & explanation
Correct answer: option 4
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{2000 ×4× 30 }{100}\)
= 2400
Now ,
The simple interest earned on Rs. 6000 at an interest rate of 5% per annum is equals to Rs. 2400.
So , 2400 = \(\frac{6000 ×5× Time }{100}\)
Time = \(\frac{240000}{6000× 5}\)
= 8 years