2018 · Q39
Two equal amounts were borrowed at 5% and 4% simple interest. The total interest after 4 years amounted to ₹ 405. What was the total amount borrowed ?
Elementary MathematicsSimple and Compound Interest
- A₹ 1075
- B₹ 1100
- C₹ 1125
- D₹ 1150
Explanation
Let each equal amount be P. Total interest = P x 0.05 x 4 + P x 0.04 x 4 = 0.36P = 405, so P = 1125. Each of the two equal borrowed amounts is Rs 1125 (the question's phrasing is loose, but 1125 is the only consistent option). Hence option C.