Ramesh has ₹18,000. He deposited ₹7,000 in a bank at the rate of 5% per annum and ₹6,000 in other bank at the rate of 6% per annum simple interest. If he received ₹1,160 as simple interest at the end of one year, then the rate of interest per annum on rest of the capital is equal to:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 9%.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
Interest on first deposit
⇒ S.I. = (7000 × 5 × 1)/100
⇒ S.I. = 35000/100
⇒ S.I. = Rs.350
Interest on second deposit
⇒ S.I. = (6000 × 6 × 1)/100
⇒ S.I. = 36000/100
⇒ S.I. = Rs.360
Total interest = 350 + 360 = Rs. 710
Ramesh received ₹1,160 as total interest
Therefore, the interest earned from the remaining capital = 1160 - 710 = Rs. 450
⇒ Total capital = ₹18,000
Amount deposited in banks = Rs.7,000 + Rs.6,000 = Rs.13,000
Remaining deposit = 18000 - 13000 = Rs. 5000
Now,
Let R be the rate of interest on the remaining capital
⇒ 450 = (5000 × R × 1)/100
⇒ 450 = 5000R/100
⇒ 450 = 50R
⇒ R = 450/50
⇒ R = 9
Thus, the rate of interest per annum on the rest of the capital is 9%