Question
Ravi lends Rs. 5,000 to two of his friends. He gives
Rs.2500 to the first at 15% p.a. simple interest. Ravi wants to make a profit of 20% on the whole. The simple interest rate at which he should lend the remaining sum of money to the second friend isSolution
Let Ravi lend the sum at x% rate to the second friend. According to the question, 15% × 2500 + x% of 2500 = 20% of 5000 ⇒  15 × 25 + 25x = 20 × 500 ⇒ 25x = 1000 – 375 ⇒  25x = 625 ⇒  x = 25 Hence, the required rate of interest is 25% p.a.
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