Multiple choice

Rs. 500 was invested at 12% per annum simple interest and a certain sum of money invested at 10% per annum simple interest. If the total interest on both the sum after 4 years is Rs. 480, the latter sum of money is :

  1. Rs. 450

  2. Rs. 750

  3. Rs. 600

  4. Rs. 550
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest from first sum = 500 * 0.12 * 4 = 240. Total interest = 480, so interest from second sum = 480 - 240 = 240. Let the second sum be P. 240 = P * 0.10 * 4 => 240 = 0.4P => P = 600.

AI explanation

First calculate the simple interest on Rs. 500 at 12 percent for 4 years using the formula SI = P * R * T / 100, which gives 500 * 12 * 4 / 100 = Rs. 240. The remaining interest is 480 - 240 = Rs. 240, which comes from the second sum invested at 10 percent. Letting the latter sum be x, we solve 240 = x * 10 * 4 / 100, yielding x = 600. The latter sum of money is Rs. 600.

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