Multiple choice

Lovepreet invested an amount of \$13,900, divided between HSBC and HDFC, at simple interest rate of 14% p.a. and 11% p.a., respectively. If the total amount of simple interest earned in 2 years be \$3,508, then what was the amount invested in HDFC bank?

  1. $6,100
  2. $6,200
  3. $6,300
  4. $6,400
  5. $6,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let H be the amount in HDFC and (13900 - H) be the amount in HSBC. The total interest is (H * 0.11 * 2) + ((13900 - H) * 0.14 * 2) = 3508. Solving this linear equation: 0.22H + 3892 - 0.28H = 3508, which simplifies to 0.06H = 384, so H = 6400.

AI explanation

Let the amount invested at 11 percent be x, making the amount at 14 percent equal to (13900 minus x). Using the simple interest formula for two years, the total interest is (13900 minus x) times 14 times 2 divided by 100 plus x times 11 times 2 divided by 100 equals 3508. Solving this equation gives 3892 minus 0.28x plus 0.22x equals 3508, meaning 384 equals 0.06x, so the amount invested in HDFC was $6,400.

Keep practicing — related questions