At the same rate of simple interest sum of the interest

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At the same rate of simple interest sum of the interest of ₹ 300 for 4 years and the inter-est of ₹ 400 for 3 years is ₹ 120. The rate of interest is

1. 5 %
2. 4%
3. 6%
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 ,

120 =	300 × 4 × r	+	400 × 3 × r
	100		100

⇒ 12r + 12r = 120
⇒ 24r = 120
⇒ r = 120 ÷ 24 = 5% per annum