A man receives 3% interest on one-fourth of his capital, 5% on two-thirds of it and 11% on the remaining capital. What is the total percentage he receives on the whole capital?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 5%
The interest from each part is added and taken as a percentage of the whole capital. Taking the capital as 12 (a number that both 4 and 3 divide) keeps the parts whole.
One-fourth of 12 \(=3\); two-thirds of 12 \(=8\); the rest \(=12-3-8=1\)
Interest \(=3\%\times3+5\%\times8+11\%\times1=0.09+0.40+0.11=0.60\)
Rate on the whole \(\displaystyle =\frac{0.60}{12}\times100=5\%\)
He receives 5% on the whole capital.