Question

A lent Rs. 5000 to B for a duration of 2 years and Rs. 3000 to C for a period of 4 years both at the same simple interest rate. In total, he received Rs. 2200 as interest from both borrowers. What is the rate of interest per annum?

• A. 10%
• B. 12%
• C. 15%
• D. 17%

Answer 1

Answer:

A. 10%

Using simple interest:

$\text{SI}=\frac{P \times R \times T}{100}$

Interest from B:

$\frac{5000 \times R \times 2}{100}$

100R

Interest from C:

$\frac{3000 \times R \times 4}{100}$

120R

Total interest:

$100R + 120R = 2200$

220R = 2200
R = 10

Therefore, the rate of interest per annum is:

10%