A sum of ₹5,000 was lent to two people, one at the rate of 16% and the other at the rate of 24%. If the simple interest after one year is ₹960, what is the sum lent at the higher rate?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹2,000.
Let the money lent on 24% be ₹x and at 16% is ₹(5000 - x)
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
Now,
According to the question
⇒ 960 = (x × 24 × 1)/100 + ((5000 - x) × 16 × 1)/100
⇒ 96000 = 24x + 16(5000 - x)
⇒ 96000 = 24x + 80000 - 16x
⇒ 8x = 160000
⇒ x = ₹2000