New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    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 is
    A 25% Correct Answer Incorrect Answer
    B 12.5% Correct Answer Incorrect Answer
    C 37.5% Correct Answer Incorrect Answer
    D 6.25% Correct Answer Incorrect Answer
    E 18.75% Correct Answer Incorrect Answer

    Solution

    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.

    Practice Next