Rs.5,000 is divided into two parts such that if one part is invested at 4% and the other at 5%, then the whole annual interest from both the sums is Rs.223. How much wasinvested at 4%?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs.2,700.
Formula used:
SI = PRT/100 ---- (1)
We have SI = simple interest, P = principal, R = rate and T = time
Calculations:
Let the amount invested on 4% = x
Amount invested on 5% = 5000 - x
Using equation (1), we get
⇒ (x × 4 × 1)/100 + ((5000 - x) × 5)/100 = 223
⇒ x/24 + (5000 - x)/20 = 223
⇒ x = 25000 - 22300
⇒ x = 2700