Multiple choice

Mohit borrowed a sum of Rs. 1150 from Anil at the simple rate of 6 p.c.p.a. for 3 years. He then added some more money to the borrowed sum and lent it to Sunil for the same time at 9 p.c.p.a. at simple interest. If Mohit gains Rs. 274.95 from the whole transaction, then what is the sum lent by him to Sunil?

  1. Rs. 1820

  2. Rs. 1758

  3. Rs. 1785

  4. Rs. 1930

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

Mohit pays 6% of 1150 for 3 years: 1150×0.06×3 = 207. Mohit lends x at 9% for 3 years: 0.09×x×3 = 0.27x. Gain = 0.27x - 207 = 274.95. So 0.27x = 481.95, x = 481.95÷0.27 = 1785. Answer C is correct. The profit is the difference between interest received and interest paid.

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