Multiple choice

A merchant lent out Rs. 1000 in two parts, one at 8% and the other at 10% interest. The yearly average comes out to the 9.2%. Find the amount lent at 10% interest is -

  1. Rs. 450

  2. Rs. 400

  3. Rs. 600

  4. Rs. 650
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the amount lent at 10% be x. Then amount at 8% is (1000-x). Total interest = 0.08(1000-x) + 0.10x = 80 - 0.08x + 0.10x = 80 + 0.02x. Average rate = (80+0.02x)/1000 = 0.092, so 80+0.02x = 92, giving 0.02x = 12, x = 600. The 10% amount is Rs. 600.

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