Question

A invested Rs.5000 at a certain rate of simple interest and Rs.4000 at 1% higher rate of interest.If the interest in both cases is same the former rate of interest is
A)3%
B)4%
C)6%
D)5%​

Answer 1

Answer:

4%

Step-by-step explanation:

Let the rates of interest in the former and latter cases be R% and (R + 1) % p.a. Then, 5000×R×4=4000×(R+1)×4⇒R+1R=5000×44000×4⇒1+1R=1+14⇒R=4Hence,Required rate=4%p.