Multiple choice

Two equal sums of money were invested at simple interest, one at 3% and the other at 3.5%. At the end of 3 years, the interest received from the latter investment exceeded the one that was received from the former investment by Rs. 120. Find the sum invested.

  1. Rs. 8,000

  2. Rs. 8,050

  3. Rs. 9,000

  4. Rs. 9,500

  5. None of these
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A Correct answer
Explanation

Let sum be P. Interest 1 = P * 0.03 * 3 = 0.09P. Interest 2 = P * 0.035 * 3 = 0.105P. Difference = 0.015P = 120. P = 120 / 0.015 = 8,000.

AI explanation

Let the equal sum invested in both schemes be P. The difference in interest earned over 3 years at the two different rates is calculated using the simple interest formula: (P * 3.5 * 3)/100 - (P * 3 * 3)/100 = 120. Simplifying the left side gives P * (10.5 - 9)/100 = 120, so P * 1.5/100 = 120. Solving for P gives P = 12000 / 1.5 = Rs. 8000.

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