Question

'A' lent ₹5000 to 'B' for 2 years and ₹3000 to 'C' for 4 years on simple interest at the same rate of interest and received ₹2200 in all from both of them as interest. The rate of interest per annum is-

• A. 7%
• B. 7 1/8%
• C. 10%
• D. 5%

Answer 1

Answer:

C. 10%

Solution: Given: Principal of B = Rs. 5000 and Time for B = 2 years Principal of C = Rs. 3000 and Time for C = 4 Years Overall Interest on both = Rs. 2200 Concept Used: SI= PNR/100 Calculation: Let the rate of interest for both B and C be R% According to the question, S.I. of A = S.I. of B + S.I. of C 2200=500x2xR/100+300x4xR/100 ⇒ 2200 = 100R + 120R ⇒ 2200 = 220R ⇒ R = 10% ∴ The rate of interest per annum is 10%.