Multiple choice

A sum of Rs. 725 is borrowed at the beginning of a year at some interest. After 8 months, a sum of Rs. 362.50 more is borrowed at a rate of interest double the earlier one. At the end of the year, the sum of interests on both loans is Rs. 43.50. What was the initial rate of interest per annum?

  1. 3.5%

  2. 4.5%

  3. 5%

  4. 5.5%

  5. 6%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let rate be R. Interest 1 = (725 * R * 1) / 100. Interest 2 = (362.5 * 2R * 4/12) / 100 = (362.5 * 2R * 1/3) / 100. Total interest = 43.50. (725R + 241.66R) / 100 = 43.50. 966.66R = 4350. R = 4.5%.

Keep practicing — related questions