Stuart, a private investor, lent a total sum of Rs.2,50,000 to two persons, Adam and Alice at 20% and 10% p.a. respectively. Both the borrowers agreed to pay back the debt (along with Interest) in two years under simple interest. At the end of two years, Stuart received Rs.85000 as Interest on the sum lent. How much did he lend to Alice?

Let the amount lent to Alice be x, making the amount lent to Adam 250000 minus x. Using the simple interest formula, the total interest earned is x times 10 times 2 divided by 100 plus 250000 minus x times 20 times 2 divided by 100, which equals 85000. Simplifying this equation gives 0.2x subtracted from 100000 equal to 85000, so 0.2x equals 15000. Solving for x gives the amount lent to Alice as 75000.

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