A sum of ₹8000 is lent out in two parts, one at 5% simple interest and the other at 7% simple interest. If the annual interest is ₹500, the sum lent at 7% is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹5000.
SI = (P × R × T)/100
Let sum at 7% = x, then at 5% = 8000 – x
(x × 7 × 1)/100 + [(8000 – x) × 5 × 1]/100 = 500
⇒ 7x + 40000 – 5x = 50000
⇒ 2x + 40000 = 50000
⇒ 2x = 10000
⇒ x = 5000