A person lent Rs. 12,000 to B for 3 years and Rs. 10,000 to C for 4 years on simple interest at the same rate of interest and received Rs 6,080 in all from both of them as interest. What is the annual rate of interest ?
Answer & explanation
Correct answer: option 2
Money lent by A to B
Principal (P)=Rs 12000
Rate (R) = R %
Time (T)= 3 years
Interest I1=\(\frac{P×R×T}{100}\) =\(\frac{12000×R×3}{100}\)
Interest I1 = 360R
Money lent by A to C
Principal (P)=Rs 10,000
Rate (R) = R %
Time (T)= 4 years
Interest I2=\(\frac{P×R×T}{100}\) =\(\frac{10000×R×4}{100}\)
Interest I2 = 400R
ATQ
I1+ I2 = 6080
360R+400R=6080
760R=6080
R=\(\frac{6080}{760}\)
Rate = 8 % per annum