Multiple choice

A lent Rs 450 to B for 2 years, and Rs. 500 to C for 3 years, at a certain rate of simple interest. If he received altogether from both Rs. 120 as interest, find the rate of interest?

  1. 3%

  2. 4%

  3. 5%

  4. 6%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total interest = (450 × 2 × r)/100 + (500 × 3 × r)/100 = (900r + 1500r)/100 = 2400r/100 = 24r. Given 24r = 120, solving gives r = 5%. Therefore the rate of interest is 5%.

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