Multiple choice

G invested Rs. 2400 in a bank paying 6% p.a. simple interest. At the end of a certain time, he withdrew the principal and interest, amounting to Rs. 3120. R invested 3/4 of G's principal in another bank which paid 8% simple interest p.a. for the same time. Find out how much interest R would receive from his bank.

  1. Rs. 720

  2. Rs. 1248

  3. Rs. 575

  4. Rs. 960

  5. None of these
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A Correct answer
Explanation

G's interest = 3120 - 2400 = 720. Time = 720 / (2400 * 0.06) = 5 years. R's principal = (3/4) * 2400 = 1800. R's interest = 1800 * 0.08 * 5 = 720.

AI explanation

Using the simple interest formula, the interest G earns is 3120 minus 2400, which equals 720 for his principal of 2400 at 6%. Setting up the equation 2400 times 6 times time divided by 100 equals 720 gives a time period of 5 years. R invests 3/4 of 2400, which is 1800, at 8% for the same 5 years. Calculating R's interest gives 1800 times 8 times 5 divided by 100, resulting in Rs. 720.

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