Question

Shruti lent some money to Pallavi at 5% p.a. simple interest. Pallavi lent the whole amount to Niki on the same day at $8\frac{1}{2}$% p.a. In this transaction after a year Pallavi earned a profit of Rs 350. Find the sum of money lent by Shruti to Pallavi.

• A. Rs $9000$
• B. Rs $10000$
• C. Rs $8500$
• D. Rs $10200$

Answer 1

The correct option is B Rs $10000$

Let Shruti lend $Rs.x$ to Pallavi
Then interest after one year paid by pallavi = $\frac{x\times 5}{100}$
And Pallavi get interest after one year = $\frac{x\times 8.5}{100}$

Given the interest earn by pallvi =350 Rs
Then the difference of both the interests = $\frac{x\times 8.5}{100}$-$\frac{x\times 5}{100}=350$
$\therefore 8.5x-5x=35000$
$\therefore x=Rs.10,000$