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

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B

₹ 1000

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C

625

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D

1200

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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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