An educational fund of ₹6,00,000 earns simple interest at 9% per annum. This annual interest is used to grant three scholarships, if the first and third scholarships are ₹18,000 and ₹22,000 respectively, what is the value of the second scholarship?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹14,000.
SI = (P × R × T)/100
Let the second scholarship = x
Interest = (600000 × 9 × 1)/100 = 54000
Sum of scholarships = 18000 + x + 22000 = 54000
⇒ 40000 + x = 54000
⇒ x = 54000 - 40000 = 14000