Question

A milkman borrowed ₹ 2500 at simple interest from two money lenders. For one loan, he paid $5\%$ p.a. and for the other, he paid $7\%$ p.a. The total interest paid after two years was ₹ 275. Calculate the money he borrowed at $7\%$ interest?

• A. ₹1875
• B. ₹ 1000
• C. ₹ 625
• D. ₹ 1200

Answer 1

The correct option is C

₹ 625

Total SI = ₹ 275
Let ₹ x be the sum borrowed at $7\%$ rate of interest.
Then, ₹(2500 - x) will be the sum borrowed at $5\%$ rate of interest.
Simple Interest = $\frac{P\times R\times T}{100}$,
where, P is the principal, R is the rate of interest per annum and T is the time period.
So, $\frac{(2500-x)\times 5\times 2}{100}+\frac{x\times 7\times 2}{100}=275$
$⟹25000-10x+14x=27500$
$⟹4x=₹2500$
$⟹x=₹625$

Therefore, money borrowed at 7% rate of interest is ₹ 625.