Naveen and Praveen borrowed rupees 42000 and rupees 55000 respectively for 7.2 years at the same rate of interest if Praveen has to pay rupees 3640 more than Naveen find the rate of interest

Dear Student,

$$\begin{gathered} Money borrowed by Naveen = Rs 42,000 \\ Money borrowed by Praveen = Rs 55,000 \\ Time Period = 7.2 years = \frac{72}{10} \\ Let R be the rate of interest. \\ S.I. paid by Naveen = \frac{42000 \times R \times 7.2}{100} = 420 \times 7.2R \\ S.I. paid by Praveen = \frac{55000 \times R \times 7.2}{100} = 550 \times 7.2R \\ Given, S.I. paid by Praveen - S.I. paid by Naveen = Rs 3,640 \\ i.e., 550 \times 7.2R - 420 \times 7.2R = 3,640 \\ 7.2R\left(550-420\right) = 3,640 \\ 130 \times 7.2R = 3,640 \\ R = \frac{3640}{130\times 7.2} =\frac{3640}{936} = 3.88\% p.a. \end{gathered}$$

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