A sum of₹2,380 is lent out into two parts, one at 25% p.a. and another at 20% p.a. . If the total annual income is₹500, find the money (in ₹) lent at 25% rate.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 480.
Let the amount lent at 25% = ₹x
Then amount lent at 20% = ₹(2380 − x)
⇒ Total Interest = Interest at 25% + Interest at 20%
⇒ 500 = 0.25x + 0.20(2380 − x)
⇒ 500 = 0.25x + 0.20 × 2380 − 0.20x
⇒ 500 = 0.25x + 476 − 0.20x
⇒ 500 = (0.25 − 0.20)x + 476 = 0.05x + 476
⇒ 500 − 476 = 0.05x ⇒ 24 = 0.05x ⇒ x = 24/0.05 = 480