Multiple choice

A man invested Rs. 10,000 for a year. Out of it, Rs. 4,000 was invested at the rate of 5%, Rs. 3,500 at the rate of 4% and remaining at the rate of x%. At the end of the year, he got Rs. 500 as compound interest. Find the value of x.

  1. 6.2%

  2. 6.3%

  3. 6.4%

  4. 6.5%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For a period of one year, simple interest and compound interest are the same. The interest earned from the first two investments is Rs. 200 and Rs. 140, totaling Rs. 340. Since the total interest is Rs. 500, the remaining Rs. 160 must come from the third investment of Rs. 2,500, which gives x = (160 / 2500) * 100 = 6.4%.

AI explanation

The remaining amount invested is 10000 - 4000 - 3500 = 2500. The interest earned from the first two parts is 5% of 4000 + 4% of 3500 = 200 + 140 = 340, so the interest from the remaining part must be 500 - 340 = 160. Since 2500 at x% for one year yields 160, we have 2500 * x/100 = 160, which gives x = 6.4.

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