Question

A sum of ₹2,380 is lent out into two parts, one at 25% p.a. and another at 20% p.a.. If the total annual income is ₹500, find the money (in ₹) lent at 25% rate.

• A. 320
• B. 240
• C. 480
• D. 560

Answer 1

Answer:

C. 480

Let the amount lent at 25% = x
Then amount at 20% = 2380 − x

Form equation using simple interest

Total annual income = ₹500

$\frac{25x}{100} + \frac{20(2380 - x)}{100} = 500$

Solve

Multiply by 100:

$25x + 20(2380 - x) = 50000$
$25x + 47600 - 20x = 50000$
$5x + 47600 = 50000$
$5x = 2400$
$x = 480$

Final Answer:

₹480 was lent at 25% rate