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Discussion

A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is?

  • A.5%
  • B.7%
  • C.7 1/8 %
  • D.10%

Answer: D

Let the rate be R% p.a. Then,

(5000 * R * 2)/100 + (3000 * R * 4)/100 = 2200

100 R + 120 R = 2200

R = 10%

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