Sitaram, a money lender lent a part of Rs 200000 to Shyam at simple interest 6% p.a. and the remaining to Sushil at 10% p.a. at simple interest. Sitaram earned an annual interest income of Rs. 18000. Based on the given information answer the following questions :
How much money did Shyam borrow?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 50000
Let Shyam borrow Rs P at 6%. Then Sushil borrows Rs (200000 − P) at 10%. The simple interest for one year adds up to Rs 18000:
\(0.06P + 0.10(200000 - P) = 18000\)
\(0.06P + 20000 - 0.10P = 18000\)
\(0.04P = 2000\)
\(P = 50000\)
So Shyam borrowed Rs 50000.