Question

A person borrowed 1,200 at 8% p.a. and Rs. 1,800 at 10% p.a. as simple interest for the same period. He has to pay Rs. 1,380 in all as interest. Find the time period.
1. 4 years
2. 10 years
3. 6 years
4. 5 years

Answer 1

Correct Answer - Option 4 : 5 years

Given :

A person borrowed 1,200 at 8% p.a. and Rs. 1,800 at 10% p.a. as simple interest for the same period. He has to pay Rs. 1,380 in all as interest.

Concept used :

Interest = (Principle × Rate of interest × time)/100 

Calculation: 

Let the time period be 't' years 

Interest for Rs. 1200 at 8% rate of interest = (1200 × 8 × t)/100 = 96t 

Interest for Rs. 1800 at 10% rate of interest = (1800 × 10 × t)/100 = 180t 

Total interest = 1380 

⇒ 96t + 180t = 1380 

⇒ 276t = 1380 

⇒ t = 5 years. 

∴ Option 4 will be the correct answer.