A money lender lends Rs. 400 for 3 years to a person and

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A money lender lends Rs. 400 for 3 years to a person and lends Rs. 500 for 4 years to the other person at the same rate of simple interest. If altogether he receives Rs. 160 as interest, what is the rate of interest per annum ?

1. 5%
2. 7%
3. 9%
4. 10%

Correct Option: A

We can find the required answer with the help of given formula ,

SI =	P × R × T
	100

According to question ,

160 =	400 × 3 × r	+	500 × 4 × r
	100		100

⇒ r(12 + 20) = 160
⇒ 32r = 160
⇒ r = 5%