If the total simple interest on a sum of ₹1,400 for 4 years at rate of interest x% p.a. and on the same sum for two years at the same rate, is ₹672, then the value of x is :
Answer & explanation
Correct answer: option 2
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
ATQ,
\(\frac{1400×Rate × 4 }{100}\) + \(\frac{1400×Rate × 2 }{100}\) = 672
56 × Rate + 28 × Rate = 672
84×Rate = 672
Rate = \(\frac{672}{84}\)
= 8%