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On Rs. 3, 000 invested at a simple interest rate 6 p.c.p.a, Rs. 900 is obtained as interest in certain years. In order to earn Rs. 1, 600 a…

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On Rs. 3, 000 invested at a simple interest rate 6 p.c.p.a, Rs. 900 is obtained as interest in certain years. In order to earn Rs. 1, 600 as interest on Rs. 4, 000 in the same number of years, what should be the rate of simple interest?
  • A7 p.c.p.a
  • B8 p.c.p.a.
  • C9 p.c.p.a.
  • DData inadequate
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Interest = P × T × R/100, where P is principal, T is period (in years) and R is rate of interest in %.

∴ 900 = 3000 × T × 6/100

⇒ T = 5 years

Similarly, for 5 years, 1600 = 4000 × 5 × R/100

⇒ R = 8%, or 8 p.c.p.a