Two equal sums were lent on simple interest at 6% and 10% per annum respectively. The first sum was recovered two years later than the second sum and the amount in each case was Rs. 1105. What was the sum (in Rs.) lent in each scheme?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 850
As per the question:
⇒ (t + 2) × 6% = t × 10%
⇒ t = 3 years
Let the amount invested be 'x'
From the formula of simple interest,
⇒ 1105 = (x × 5 × 6)/100 + x
⇒ 1.3x = 1105
⇒ x = 850