A. 6%
B. 7.5%
C. 5%
D. 10%
If the interest on Rs. 800 in 2 years is more than the interest on Rs. 400 by Rs. 40 in 2 years, find the rate of simple Interest.
P1 = Rs.800
P2 = Rs.400
Time = 2 years
Difference in S.I. = Rs.40
Formula used:
S.I. = (PRT)/100
Calculation:
(P1RT)/100 – (P2RT)/100 = 40
RT(800 – 400) = 4000
R = 4000/800
R = 5%