A sum of money at simple interest amounts to ₹720 in 2 years while in next 5 years it amounts to ₹1020. Find the sum and the rate of interest.
Answer & explanation
Correct answer: option 4
Interest in 5 years = 1020 - 720 = 300
Interest in 1 year = 60
Principal = 720 - (2 x 60)
= 600
rate = \(\frac{60}{600}\) x 100 = 10%