Vinod had Rs.10,000 with him. He lent a part of it at 8% per annum simple interest and the remaining at 10% per annum. His total annual income was Rs.880. Find the sum lent at 8%.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs.6,000.
Simple Interest = (P × R × T)/100
SI on the sum of 10,000 at the rate of 8% per annum = 10000 × 8/100 = Rs 800
Total annual Income = Rs 880
Extra interest in 1 year = 880 - 800 = Rs 80
(10 - 8) = 2%
2% = 80
100% = 4000
Money invested on 2nd part = 4000
Money invested on 1st part = 10000 - 4000 = Rs. 6000