Divide ₹2760 into two parts such that when these are invested for 2 and 4 years, respectively, at the rate of 5% per annum simple interest, the amounts received are equal. What is the second part (in ₹) invested?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1,320.
Let the two parts be x and (2760 - x)
According to the question,
x + (x × 2 × 5)/100 = 2760 - x + [(2760 - x) × 4 × 5]/100
⇒ (100x + 10x)/100 = (276000 - 100x + 55200 - 20x)/100
⇒ 110x = 331200 - 120x
⇒ 230x = 331200
⇒ x = 1440
Thus, second part = 2760 - 1440 = 1320