Multiple choice

Mr. Hamilton invested an amount of Rs. 13,900 divided in two different schemes A and B atthe simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simpleinterest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?

  1. Rs. 6400

  2. Rs. 6500

  3. Rs. 7200

  4. Rs. 7500

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

Let x be the amount in Scheme A and (13900 - x) in Scheme B. Total interest = (x * 0.14 * 2) + ((13900 - x) * 0.11 * 2) = 3508. Solving: 0.28x + 3058 - 0.22x = 3508, so 0.06x = 450, x = 7500. Scheme B = 13900 - 7500 = 6400.

AI explanation

Using the alligation method, the average annual interest rate is 3508 divided by (13900 multiplied by 2), which equals 0.126 or 12.6%. The ratio of the amount invested in Scheme A to Scheme B is (12.6 minus 11) to (14 minus 12.6), resulting in 1.6 to 1.4 or 8 to 7. Since the total investment is Rs. 13,900, the amount invested in Scheme B is seven fifteenths of 13900, resulting in Rs. 6400.

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