Multiple choice

A certain sum of money is invested at an interest rate of 5% per annum and a second sum, twice as large as the first, is invested at 5.5% per annum. The total amount of interest earned from the two investments together is Rs. 1000 per year and the interest is withdrawn every year. The second sum invested is

  1. Rs. 6250

  2. Rs. 10,500

  3. Rs. 12,500

  4. Rs. 15,000

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the first sum be x. The second is 2x. Interest = 0.05*x + 0.055*(2x) = 1000. 0.05x + 0.11x = 1000. 0.16x = 1000. x = 6250. The second sum is 2x = 12500.

AI explanation

Let the first sum be x, making the second sum 2x. The total annual interest is the sum of the individual simple interests for one year, so (x * 5 * 1) / 100 + (2x * 5.5 * 1) / 100 = 1000. This simplifies to 0.05x + 0.11x = 1000, which further reduces to 0.16x = 1000. Solving for x gives Rs. 6250, meaning the second sum of 2x is Rs. 12500.

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