Multiple choice

Ramesh invests ₹1,200 at 5% simple interest. How much additional money must he invest at 8% simple interest so that his total annual income will be equal to 6% of his total investment during this year?

  1. ₹500

  2. ₹600

  3. ₹1,200

  4. ₹1,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let x be the additional amount. Total investment = 1200 + x. Total interest = 0.05 * 1200 + 0.08 * x. We want total interest = 0.06 * (1200 + x). 60 + 0.08x = 72 + 0.06x. 0.02x = 12, so x = 600.

AI explanation

Let the additional money to be invested at 8 percent be x. Using the method of alligation, the ratio of the amounts invested at 5 percent and 8 percent to yield an overall 6 percent return is (8 - 6) : (6 - 5), which is 2 : 1. Since the amount at 5 percent is 1200, we have 1200 / x = 2 / 1. Solving for x gives the additional investment required as 600.

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