Question

Two equal sums were lent on simple interest at 6% and 10% per annum respectively. The first sum was recovered two years later than the second sum and the amount in each case was Rs.1105. What was the sum (in Rs.) lent in each scheme?
1. 891
2. 850
3. 936
4. 900

Answer 1

Correct Answer - Option 2 : 850

Formulas used:

Simple Interest = P × r × t/100 

Amount = Simple Interest + Principal

Calculation:

Let year be t and principal be P

As per the question;

(t + 2) × 6% = t × 10%

⇒ 6% t + 12% = 10% t 

⇒ 12% = 4% t 

⇒ t = 3

Amount = Principal + Simple Interest 

⇒ P + P × 6/100 × 5 = 1105

⇒ P + 3/10 × P = 1105

⇒ 13P/10 = 1105

⇒ P = 1105 × 10/13

∴  P = Rs.850