Question

vishal and vipin borrowed rs4000 and 5000 respectively at the same rate of simple interest for 2*1/2years.If vipin paid rs 120 more than vishal, find the rate of interest per annum. ​

Answer 1

Answer:

4.8% per annum

Explanation:

Let the rate of interest be x.

For Vishal,

Principal (P) = Rs.4000

Time (T) = 2½ years = 5/2 years

Simple Interest (SI) = PRT/100

=> SI = 4000 × x × 5/2 × 1/100 = 100x

For Vipin,

Principal (P) = Rs.5000

Time (T) = 2½ years = 5/2 years

Simple Interest (SI) = PRT/100

=> SI = 5000 × x × 5/2 × 1/100 = 125x

According to Question,

125x - 100x = 120

=> 25x = 120

=> x = 4.8

Hence, the rate of interest is 4.8% per annum.