Question

A man has Rs. 10,000 to invest. He invests Rs. 4,000 at 5% and Rs. 3,500 at 4%. In order to have a yearly income of Rs. 500, he must invest the remainder at:

• A. 6%
• B. 6.1%
• C. 6.2%
• D. 6.3%
• E. 6.4%

Answer 1

The correct option is E 6.4%

Let's assume he invested at $X\%$

$4000$ at $5\%$ gives $\frac{4000\times 5}{100}=200$

$3500$ at $4$ gives $\frac{3500\times 4}{100}=140$

To have $500$, he needs $500-(200+140)=160$ more

Money left to invest $=1000-(4000+3500)=2500$.

$x\%=\frac{160}{2500}\times 100=6.4\%$