A sum of Rs 2525 is lent out in two parts in such a way that the interest on one part at 7% for 4 years is equals to that on another part at 6% for 7 years. Find the difference between the two parts of the sum.
Answer & explanation
Correct answer: option 1
Total sum = P = P1 + P2
ATQ,
P1 x 7% x4 = P2 x 6% x 7
P1 x 28% = P2 x 42%
2 x P1 = 3 x P2
⇒ P1 : P2 = 3 : 2 = 5R (Total)
⇒ 5R = 2525,
1R = 505
Difference b/w P1 and P2 = 1R = 505