A person invested a sum of ₹10,500 at x% per annum at simple interest and a sum of ₹13,500 at (x + 2)% p.a. at simple interest. If the total interest earned on both the investments for 3 years is ₹7,650, then the rate of interest on the first investment is:
Answer & explanation
Correct answer: option 2
By using formula ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
ATQ,
\(\frac{10500 × x × 3 }{100}\) + \(\frac{13500 ×(x+2)× 2 }{100}\) = 7650
(105 × x × 3) + (135 ×(x+2)× 3 ) = 7650
315x + 405x + 810 = 7650
720x = 6840
x = 9.5%