A bank lent out Rs. 25,000 in two parts, one at 7% per annum and other at 11% per annum interest. The yearly average comes out to be 9.4%. The amount lent in two parts will be
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 10,000 & Rs. 15,000
By the rule of alligation on the rates 7% and 11% with the mean rate 9.4%,
\( \displaystyle \text{amount at }7\%:\text{amount at }11\%=(11-9.4):(9.4-7) \)
\( \displaystyle =1.6:2.4 \)
\( \displaystyle =2:3 \)
Dividing Rs. 25,000 in the ratio 2 : 3,
\( \displaystyle \text{at }7\%:\ \frac{2}{5}\times25{,}000=10{,}000 \)
\( \displaystyle \text{at }11\%:\ \frac{3}{5}\times25{,}000=15{,}000 \)