# What will be the Interest Rate of A? If

A and B borrowed Rs.3000 and Rs.3200 respectively at the same rate of interest for 2.5 years. If B paid Rs. 40 more interest than A, find the rate of interest:

- 8%
- 5%
- 6%
- 7%

**Answer: (1) 8%
Explanation:-**

Let be the rate of interest = R%

According to the question,

3,200 x R x 5/2 x 100 – 3,000 x R x 5/2 x100 = 40

= 80R – 75R = 40

= 5R = 40

R = 8%

Hence, the answer is (1) 8%.