Multiple choice

A man lent Rs. 2500 at a certain rate of interest and Rs. 1500 at 1% higher. After 3 years, he received Rs. 525 as simple interest in all. Find the rates.

  1. 3%, 4%

  2. 4%, 5%

  3. 4½%, 5½%

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let rates be r and r+1. 2500*r*3/100 + 1500*(r+1)*3/100 = 525. 75r + 45r + 45 = 525. 120r = 480. r = 4%. Rates are 4% and 5%.

AI explanation

Let the lower rate be r%, so the interest equation is 2500 times r times 3 divided by 100 plus 1500 times (r plus 1) times 3 divided by 100 equals 525. This simplifies to 75r plus 45r plus 45 equals 525, or 120r equals 480, yielding r equals 4. The two rates are 4% and 1% higher at 5%.

Keep practicing — related questions