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 :
In what ratio did Sitaram lent the money at 6% p.a. and 10% p.a. respectively?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 1 : 3
The mean rate is 18000 ÷ 200000 × 100 = 9%. By the rule of alligation, the amounts are in the inverse ratio of the distances of the two rates from the mean rate:
\(\text{amount at } 6\% : \text{amount at } 10\% = (10 - 9) : (9 - 6)\)
\(= 1 : 3\)
Check: Rs 50000 at 6% gives Rs 3000 and Rs 150000 at 10% gives Rs 15000; together Rs 18000.