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?
₹ 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 = P×R×T100,
where, P is the principal, R is the rate of interest per annum and T is the time period.
So, (2500−x)×5×2100+x×7×2100=275
⟹25000−10x+14x=27500
⟹4x=₹ 2500
⟹x=₹ 625
Therefore, money borrowed at 7% rate of interest is ₹ 625.