Question

Raj borrows Rs.8,000; out of which Rs.4,500 at 5% and remaining at 6%. Find the total interest paid by him in 4 years.

• A. Rs. $1,840$
• B. Rs. $1,170$
• C. Rs. $1,740$
• D. Rs. $1,890$

Answer 1

The correct option is C Rs. $1,740$

Raj paid $5$% interest for Rs $4500$ and $6$% interest for Rs $3500$

So interest paid at the rate of $5$% in $4$ years is $4500\times \frac{5}{100}\times 4=900$

Interest paid at the rate of $6$% in $4$ years is $3500\times \frac{6}{100}\times 4=840$

Total interest paid in $4$ years is $900+840=1740$

Therefore the correct option is $C$