Two equal sums are lent at 8% and 4% simple interest per annum at the same time. The first sum is received 2 years earlier than the other and the amount received in each case is Rs. 14500. Each sum is (in Rs):
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 12500
Let R1 = 8%, R2 = 4%
Time = T, Sum = P
SI = PRT/100
Hence,
14500 - P = (P × 0.08 × t)
And
14500 - P = (P × 0.04 × (t + 2))
Solving above two equations:
1 = 2t/t+2
⇒ 2t = t + 2
⇒ t = 2
Hence,
14500 - P = (P × 0.08 × 2)
⇒ 1.16P = 14500
⇒ P = 14500/1.16 = 12500
Hence, the sum = Rs. 12500