A sum of Rs 17,200 is lent out at simple interest in two parts for 2 years at 8%p.a. and 10% p.a. respectively. If the total interest received after 2 years is Rs 3,008, then the money lent (in Rs) at the rate of 8% p.a. is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 10800
Formula used:
Simple interest = PRT/100
Where P = principal, R = rate and T = time
Calculations:
Let the amount lent on 8% rate be x
Amount lent on 10% rate = (17200 - x)
According to the question, total interest is Rs. 3008
⇒ 4x/25 + (17200 - x)/5 = 3008
⇒ 4a + 86000 - 5a = 3008 × 25
⇒ a = 86000 - 75200 = 10800