Multiple choice

M borrowed a sum of Rs.1150 from A 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 S for the same time at 9 p.c.p.a. at simple interest. If M gains Rs.274.95 from the whole transaction, then what is the sum lent by him to S?

  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

M's interest payment on Rs.1150 at 6% for 3 years is Rs.207. Total gain of Rs.274.95 means M receives Rs.481.95 from S (274.95+207). At 9% for 3 years (0.27 rate), the sum lent must be 481.95÷0.27=Rs.1785. M added Rs.635 to the original sum.

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