On investing Rs. 20000 in simple interest for two years, the interest earned is Rs. 190 more than the interest earned when Rs. 13000 is invested in simple interest for three years, at the same rate. Find the rate of interest (in % per annum).
Solution
Correct Answer: Option D
We know, Simple Interest = (Principal Amount × Rate of Interest × Time Period)/100
Let rate of interest be R% per annum.
On investing Rs. 20000 in simple interest for two years, the interest earned is Rs. 190 more than the interest earned when Rs. 13000 is invested in simple interest for three years, at the same rate.
⇒ (20000 × R × 2)/100 = 190 + (13000 × R × 3)/100
⇒ 400R = 190 + 390R
⇒ 10R = 190
⇒ R = 19
∴ Rate of interest is 19% per annum.
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