A person invested a sum of Rs. 10,500 at x% per annum at simple interest and a sum of Rs. 13,500 at (x + 2)% p.a. at simple interest. If the total interest earned on both the investments for 3 years is Rs. 7,650, then the rate of interest on the first investment is:
Answer & explanation
Correct answer: option 3
We know,
SI = prt/100
According to the question
(10500 × x × 3)/100 + [13500 × (x + 2) × 3]/100
315x + 405x + 810 = 7650
720x = 7650 – 810 = 6840
x = 6840/720 = 9.5%