For the next two (02) items that follow:
A person borrows a sum of ₹16,000 on simple interest at the beginning of a year. After 4 months, ₹24,000 more is borrowed on a rate of interest double the previous one. At the end of the year, the total interest on both the loans is ₹4800.
89. What is the initial rate of interest per annum?

Question

For the next two (02) items that follow:

A person borrows a sum of ₹16,000 on simple interest at the beginning of a year. After 4 months, ₹24,000 more is borrowed on a rate of interest double the previous one. At the end of the year, the total interest on both the loans is ₹4800.

89. What is the initial rate of interest per annum?

Accepted Answer

Option B: 10%