Multiple choice

Shruti lent some money to Pallavi at 5% p.a. simple interest. Pallavi lent the whole amount to Niki on the same day at $\displaystyle 8\frac{1}{2}$% p.a. In this transaction after a year Pallavi earned a profit of Rs 350. Find the sum of money lent by Shruti to Pallavi.

  1. Rs $9000$
  2. Rs $10000$
  3. Rs $8500$
  4. Rs $10200$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let P be the principal. Interest. Pallavi earns (8.5% - 5%) = 3.5% on the principal. 3.5% of P = 350. P = 350 / 0.035 = 10000.

AI explanation

Pallavi's profit of Rs 350 is the difference between the interest she receives from Niki and the interest she pays to Shruti. Using the simple interest formula for 1 year, the equation is (P * 8.5 / 100) - (P * 5 / 100) = 350. This simplifies to 3.5P / 100 = 350, so P = 10000. The sum lent by Shruti to Pallavi is Rs 10000.

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