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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?

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Solution

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 = 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.

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