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.


A) 6%

B) 7.5%

C) 5%

D) 10%

Given:

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%

∴ The rate of simple interest is 5%.

Related MCQs:
  1. A sum of Rs.12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?
  2. A sum of Rs 12500 amounts to Rs. 15500 in the 4 years at the rate of simple interest. Find the rate percent?
  3. A sum of Rs.12,500 amounts to Rs. 15,500 in 4 years after interest. What is the rate of interest?
  4. Village x has a population of 68000 which is decreasing at the rate of 1200 per year. Village y has a population of 42000, which is increasing at the rate of 800 per year. In how many years will the population of two villages be equal?