Simple Interest Practice Test 3

Question : 27 of 40

Marks: +1, -0

Arun lends Rs 20,000 to two of his friends. He gives Rs 12,000 to the first at 8% p.a. simple interest. Arun wants to make a profit of 10% on the whole. The simple interest rate at which he should lend the remaining sum of money to the second friend is:

Validate

Solution:

Money lend to two of his friends = Rs 20,000 Profit = 10%
Profit amount

={20,000×10}/100=2000

Simple interest got from the first friend

={P×R×T}/100

={12000×8×1}/100=960

Money lent to the second friend:
P = 8,000, T = 1 year
SI = 2,000 - 960 = 1,040

R={SI×100}/{P×T}

={1040×100}/{8000×1}=13%

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