Question

A lent out certain money into two parts on simple interest for 2 years. The 3/4th of sum of money is lent out at rate of interest 15%. Remaining sum is lent out at rate of interest 20% and interest earned from that is Rs.600. Find the total simple interest earned by A.
1. Rs.1850
2. Rs.1700
3. Rs.2100
4. Rs.1950

Answer 1

Correct Answer - Option 4 : Rs.1950

Formula:

Let P = Principle, R = Rate of interest and N = Period

Simple Interest = PNR/100

Calculation:

Let total sum A has be Rs.A.

Remaining sum lent out at rate of interest 20% = A - A × 3/4 = Rs.A/4

⇒ 600 = A/4 × 20 × 2/100

⇒ A = 6000

Total sum A has is Rs.6000.

Sum invested at rate of interest 15% = 6000 × 3/4 = Rs.4500

Simple interest earned on sum of Rs.4500 = 4500 × 15 × 2/100 = Rs.1350

∴ Total interest earned = 1350 + 600 = Rs.1950