If the total simple interest on a sum of Rs. 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 Rs. 672, then the value of x is:
1. 6%
2. 10%
3. 9%
4. 8%
1. 6%
2. 10%
3. 9%
4. 8%
Correct Answer – Option 4 : 8%
Given:
simple interest= Rs.1,400
time = 4 years
Formula Used:
SI = P × T × R /100
Calculation:
Let the Rate = x
We know that,
SI = P × T × R /100
⇒ 672 = 1400 × 4 × x /100 + 1400 × 2 × x /100
⇒ 672 = 56x + 28x
⇒ 672 = 84x
⇒ x = 672/84
⇒ x = 8
∴ Rate = 8%