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