Mr. X invested one fourth of his capital at 8%, one third at 7% and the remaining part at 10%. If his annual simple interest on this investment is Rs 510, then the total capital invested by Mr. X is?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 6000
1. Determine the Fractions of Capital
Let the total capital be $C$. The investment is divided into three parts:
- Part 1: $\frac{1}{4}$ of capital at 8%
- Part 2: $\frac{1}{3}$ of capital at 7%
- Part 3: The remaining part at 10%
To find the "remaining part," we subtract the first two fractions from the whole:
$\text{Remaining Part} = 1 - \left(\frac{1}{4} + \frac{1}{3}\right)$
To add the fractions, find a common denominator (12):
$1 - \left(\frac{3}{12} + \frac{4}{12}\right) = 1 - \frac{7}{12} = \frac{5}{12}$
2. Set Up the Simple Interest Equation
The formula for annual simple interest is $\text{Interest} = \text{Principal} \times \text{Rate}$. The sum of the interest from all three parts equals Rs. 510:
$\left( \frac{1}{4}C \times \frac{8}{100} \right) + \left( \frac{1}{3}C \times \frac{7}{100} \right) + \left( \frac{5}{12}C \times \frac{10}{100} \right) = 510$
Simplify each term:
- $\frac{8C}{400} = \frac{2C}{100}$
- $\frac{7C}{300}$
- $\frac{50C}{1200} = \frac{5C}{120}$
To make calculations easier, let's use a common denominator of 1200 for all terms:
$\frac{24C}{1200} + \frac{28C}{1200} + \frac{50C}{1200} = 510$
$\frac{102C}{1200} = 510$
3. Solve for Total Capital ($C$)
$102C = 510 \times 1200$
$C = \frac{510 \times 1200}{102}$
Since $510 \div 102 = 5$:
$C = 5 \times 1200$
$C = 6000$
Conclusion:
The total capital invested by Mr. X is Rs. 6000.
Correct Option: Rs. 6000