Answer: A
Assume the annual rate of interest is \(x\%\). Simple interest on ₹400 for 5 years = \(\cfrac{400 \times 5 \times x}{100} = 20x\) rupees Simple interest on ₹600 for 4 years = \(\cfrac{600 \times 4 \times x}{100} = 24x\) rupees ∴ Total interest = \(20x + 24x = 132\) Or, \(44x = 132\) Or, \(x = 3\) ∴ The rate of interest is 3%
Assume the annual rate of interest is \(x\%\). Simple interest on ₹400 for 5 years = \(\cfrac{400 \times 5 \times x}{100} = 20x\) rupees Simple interest on ₹600 for 4 years = \(\cfrac{600 \times 4 \times x}{100} = 24x\) rupees ∴ Total interest = \(20x + 24x = 132\) Or, \(44x = 132\) Or, \(x = 3\) ∴ The rate of interest is 3%