Multiple choice

Ram lent Rs. 800 to one friend for 2 years and one fourth of that amount to another friend for 3 years. He received Rs. 275 in total as simple interest. What is the rate of interest?

  1. 10%

  2. 12.5%

  3. 15%

  4. 17.5%

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

Interest 1 = 800 * r * 2 / 100 = 16r. Interest 2 = (800/4) * r * 3 / 100 = 200 * r * 3 / 100 = 6r. Total interest = 16r + 6r = 22r = 275. Therefore, r = 275 / 22 = 12.5%.

AI explanation

The total simple interest is the sum of interest from both loans, so 275 equals 800 times R times 2 divided by 100 plus 200 times R times 3 divided by 100. Simplifying the right side gives 275 equal to 16R plus 6R, which means 275 equals 22R. Dividing 275 by 22 yields a rate of 12.5%.

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