Question

Ravi lent Rs. 400 to Ashok for 2 years, and Rs. 100 to Mukesh for 4 years and received togher from both Rs. 60 as interest. FInd the rate of interest (Simple Interest), being calculated.

• A. 5%
• B. 6%
• C. 7%
• D. 8%

Answer 1

The correct option is A 5%

Method 1:
Total effective amount lent for 1 year $=(400\times 2)+(100\times 4)=1200$
The interest being Rs. 60, Rate of interest $=\frac{(60\times 100)}{1200}=5\%$

Method 2:
Let the interest in the first case $=x=\frac{(400\times 2\times r)}{100}$
Thus, $8r=x---\left(1\right)$
Similarly, $60-x=\frac{(100\times 4\times r)}{100}$
Thus, $4r=60-x---\left(2\right)$
Adding (1) and (2) , $r=5\%$