Question

Mr Garg lent Rs 15000 to his friend. He charged 15% per annum on Rs 12500 and 18% on the rest. How much interest does he earn in 3 years?

Answer 1

Principal amount (P) = Rs 12500
Time period (T) = 3 years
Rate of interest (R) = 15% p.a.

Interest = $\frac{P\times R\times T}{100}=\frac{12500\times 15\times 3}{100}$ = Rs 5625

Rest of the amount lent = Rs 15000 − Rs 12500 = Rs 2500
Rate of interest = 18 % p.a.
Time period = 3 years

Interest = $\frac{P\times R\times T}{100}=\frac{2500\times 18\times 3}{100}$ = Rs 1350

Total interest earned = Rs 5625 + Rs 1350 = Rs 6975