Varun borrowed a total amount of ₹30000. A part of it was lent on SI at 8% per annum and remaining on SI at 6% p.a. If at the end of 2nd year, he paid in all ₹37700 to settle the loan amount, what was the amount borrowed at 8% per annum?
Answer & explanation
Correct answer: option 3
Let the sum alloted to part 1 be P₁ and part 2 be P₂ = 30000 - P₁
Interest =37700 - 30000 = 7700
\(\frac{P₁ × 8 × 2 }{100}\) + \(\frac{P₂ × 6 × 2}{100}\) = 7700
(P × 16) + ((30000 - P) × 12) = 3,85,000
4P = 25000
P = 6250