Multiple choice

Out of Rs. 70,000. I invest Rs. 30,000 at 4% and Rs. 20,000 at 3%, simple Interest. At what rate of interest must I invest the balance so as to get a return of 5% on the whole amount per annum?

  1. 5%

  2. 7%

  3. 8%

  4. 8.5%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total = 70,000. 30,000 at 4% = 1200. 20,000 at 3% = 600. Balance = 20,000. Total interest needed = 5% of 70,000 = 3500. Interest from balance = 3500 - 1800 = 1700. Rate = (1700 / 20,000) * 100 = 8.5%.

AI explanation

The total return needed on Rs.70,000 at 5 percent is (70000 * 5) / 100, which equals Rs.3,500. The interest from the first part is (30000 * 4) / 100 = Rs.1,200 and the second part is (20000 * 3) / 100 = Rs.600. The remaining balance is Rs.20,000, and it must earn 3500 - 1200 - 600 = Rs.1,700 in interest. The required rate is (1700 * 100) / 20000, which equals 8.5 percent.

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