Tarun borrowed a total amount of ₹40000. A part of it was lent on SI at 12% per annum and remaining on SI at 10% p.a. If at the end of 2nd year, he paid in all ₹48600 to settle the loan amount, what was the amount borrowed at 12% per annum?
Answer & explanation
Correct answer: option 4
Let the sum alloted to part 1 be P₁ and part 2 be P₂ = 40000 - P₁
Interest = 48600 - 40000 = 8600
\(\frac{P₁ × 12 × 2 }{100}\) + \(\frac{P₂ × 10 × 2}{100}\) = 8600
(P × 12) + ((40000 - P) × 10) = 430000
2P = 30000
P = 15000