Question : Karun borrowed INR 12,000 from Varun and INR 15,000 from Tarun, each for two years at the same rate of simple interest per annum. If he paid an interest of INR 1,680 to Varun at the end of 2 years, then what is the interest that Karun paid to Tarun at the end of the 2 years?
Option 1: INR 2,050
Option 2: INR 1,800
Option 3: INR 2,100
Option 4: INR 2,350
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Correct Answer: INR 2,100
Solution :
Simple Interest = $\frac{P×R×T}{100}$, where P is the principal, R is the rate of interest, and T is the time.
According to the question
Simple Interest (SI) paid to Varun is INR 1,680
⇒ SI = $\frac{P×R×T}{100}$
⇒ 1680 = $\frac{12000×R×2}{100}$
⇒ R = $\frac{168000}{24000}$ = 7%
So, the interest to be paid to Tarun = $\frac{15000×7×2}{100}$ = INR 2,100
Hence, the correct answer is INR 2,100.
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