Question

A merchant lent out Rs.1000 in two parts, one at 8% and the other at 10% interest. The yearly average comes out to be 9.2%. find the amount lent in two parts?

• A. 400,600
• B. 550,450
• C. 500,500
• D. 600,400
• E. None

Answer 1

The correct option is A

400,600

$\frac{quantitylentat8}{quantitylentat10}=\frac{10-9.2}{9.2-8}=\frac{2}{3}$
Quantity of money lent at 8%=$\frac{2}{2+3}$$\times$1000=400 and the second part is 600.