Multiple choice

A sum of Rs. 50,000 is lent partly at 4% and remaining at 5% per annum. If the yearly simple interest on the average is 4.6%, the two parts are:

  1. Rs. 22,500, Rs. 27,500

  2. Rs. 15,000, Rs. 35,000

  3. Rs. 20,000, Rs. 30,000

  4. Rs. 25,000, Rs. 25,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using alligation: Part 1 at 4%, Part 2 at 5%, Average at 4.6%. The ratio of parts is (5 - 4.6) : (4.6 - 4) = 0.4 : 0.6 = 2 : 3. Total parts = 5. Each part = 50,000 / 5 = 10,000. Parts are 20,000 and 30,000.

AI explanation

Using the method of alligation on the interest rates, the ratio of the amounts invested at 4% and 5% is (5 - 4.6) to (4.6 - 4), which is 0.4 to 0.6 or 2 to 3. The total sum of Rs. 50,000 is divided into 5 total parts, making each part worth Rs. 10,000. Multiplying by the ratio gives the two parts as Rs. 20,000 and Rs. 30,000.

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