A lender lends Rs. 10,000 at 8% per annum simple interest for t years and then lends an additional Rs. 5,000 at 12% per annum simple interest for the same period t. If the total simple interest at the end of t years is 5,400, find t (in years).
Show answer & explanation
Correct answer: C
Explanation
Given:
First Principal Amount = ₹10,000; Rate = 8% per annum
Second Principal Amount = ₹5,000; Rate = 12% per annum
Time = t years
Total Simple Interest = ₹5,400
According to the formula:
Simple Interest = (P × R × T) / 100
Interest on the first loan = (10,000 × 8 × t) / 100 = 800t
Interest on the second loan = (5,000 × 12 × t) / 100 = 600t
Total Interest = 800t + 600t = 1400t
1400t = 5400
t = 5400 / 1400
t = 3.86 years