A person invested a sum of Rs. 18600 at x% p.a. and another sum that is twice the former at (x + 2)% p.a. both at simple interest. If the total interest earned on both investments for 3.5 years is Rs. 23110.50, then the rate of interest p.a. on the second investment is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 12.5%
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Understanding |
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Given: P1 = Rs. 18600 and P2 = 2 × 18600 = Rs. 37200 R1 = x% and R2 = (x + 2)% Time = 3.5 years |
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Application |
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So, Total interest = (18600 × x × 3.5)/100 + (37200 × (x + 2) × 3.5)/100 651x + 1302x + 2604 = 23110.50 1953x = 20506.5 x = 10.5 |
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Hence, Rate of interest p.a. on the second investment = 10.5 + 2 = 12.5% |