Varun invests a sum of ₹5400 and Ashish invests a sum of ₹9400 at the same rate of simple interest per annum. If, at the end of 3 years, Ashish gets ₹960 more interest than Varun, then find the rate of interest per annum (in percentage).

Correct option is A

Given:

- Varun's Principal = ₹5400

- Ashish's Principal = ₹9400

- Time = 3 years

- Difference in interest = ₹960

Formula Used:

- Simple Interest (SI) = $$\frac{(P × R × T) }{ 100}$$​​

- Difference in interest = SI(Ashish) − SI(Varun)

Solution:

Let the rate of interest be R% per annum.

SI by Ashish = $$\frac{(9400 × R × 3)}{100} = 282R$$​​

SI by Varun = $$\frac{(5400 × R × 3)}{100}$$​ = 162R

Difference = 282R − 162R = 120R

Given, 120R = 960

=> R = $$\frac{960 }{ 120}$$​ = 8

Final Answer: The rate of interest per annum is 8%