Two equal sums were lent on simple interest at 6% and 10% per annum respectively. The first sum was recovered two years later than the second sum and the amount in each case was ₹1105. What was the sum (in ₹) lent in each scheme?
Answer & explanation
Correct answer: option 2
Interest = \(\frac{Principal ×Rate × Time }{100}\)
Amount = Principal + Interest
Calculation
Let Year be t and Principal be P
A.T. Q ,
( t+ 2) × 6% = t × 10%
⇒ 6% t + 12% = 10%t
⇒ t = 3 years
Amount = Principal + Interest
⇒ P + \(\frac{ P ×6 × 5}{100}\) = 1105
⇒ P + \(\frac{ 3 × P }{10}\) = 1105
⇒ \(\frac{ 13 P }{10}\)= 1105
⇒ P = 1105 × \(\frac{10}{13}\)
⇒ P = Rs. 850