Multiple choice

Rs. $1,000$ was invested at $10$% per annum simple interest and a certain sum of money invested at $20$% per annum simple interest. If the sum of the interests on both the sums after $4$ years is Rs. $800$, the latter sum of money is ?

  1. Rs. $450$
  2. Rs. $500$
  3. Rs. $550$
  4. Rs. $600$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest 1 = (1000 * 0.10 * 4) = 400. Total interest = 800, so Interest 2 = 400. 400 = (P * 0.20 * 4) => 400 = 0.8 * P => P = 500.

AI explanation

Using the simple interest formula SI = (P * R * T) / 100, the interest on Rs 1000 at 10% for 4 years is (1000 * 10 * 4) / 100 = Rs 400. The total interest from both investments is Rs 800, so the interest on the second sum is 800 - 400 = Rs 400. Substituting this into the formula gives 400 = (P * 20 * 4) / 100, which yields the latter sum as Rs 500.

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