An equal sum of money was lent to P and Q at 8.6% per annum for a period of 7 years and 8 years, respectively. If the difference in interest paid by them was ₹172, then the sum lent to each was:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹2,000.
(P × 8.6 × 8)/100] - [(P × 8.6 × 7)/100] = 172
⇒ 0.688P - 0.602P = 172
⇒ 0.086P = 172
⇒ P = 172/0.086 = 2000
Hence, the sum of money is ₹2,000.