Multiple choice

A milk man borrowed Rs. 3,500 from two money lenders. For one loan, he paid 5% p.a. and for the other, he paid 10% p.a. The total interest paid for two years was Rs. 500. How much did he borrow at 10% rate?

  1. Rs. 2000

  2. Rs. 1500

  3. Rs. 1650

  4. Rs. 1675
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let x be amount at 5% and (3500-x) at 10%. Interest = (x*5*2)/100 + ((3500-x)*10*2)/100 = 500. 0.1x + 700 - 0.2x = 500. 0.1x = 200, x = 2000. Amount at 10% = 3500 - 2000 = 1500.

AI explanation

Let the amount borrowed at 10% be x, making the amount borrowed at 5% equal to (3500 - x). Using the simple interest formula for two years, the total interest equation is 500 = (x times 10 times 2)/100 + ((3500 - x) times 5 times 2)/100. Simplifying this gives 500 = x/5 + (3500 - x)/10, which further reduces to 5000 = 2x + 3500 - x. Solving for x gives x = 1500, meaning he borrowed Rs. 1500 at 10%.

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