Question

A man possessing Rs 6800, lent a part of it at 10% simple interest and the remaining at 7.5% simple interest. His total income after $3\frac{1}{2}$ years was Rs 1904. Find the sum lent at 10% rate.

• A. Rs 1260
• B. Rs 1700
• C. Rs 1360
• D. None of these

Answer 1

The correct option is C Rs 1360

Annual interest income =$\frac{1904}{3.5}=544$. An interest of Rs 544 on a lending of Rs 6800 implies an 8% average rate of interest. This 8% is generated by mixing two loans @ 7.5% and 10% respectively. The ratio in which the two loans should be allocated would be 4:1. The amount lent at 10% would be $1\times \frac{6800}{5}=1360$.