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A person invested a sum of Rs 10,500 at ...

A person invested a sum of Rs 10,500 at x% per annum at simple interest and a sum of Rs 13,500 at (x + 2)% p.a. at simple interest. If the total interest earned on both the investments for 3 years is Rs 7,650, then the rate of interest on the first investment is:

A

0.08

B

0.085

C

0.09

D

0.095

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will use the formula for simple interest and set up an equation based on the information given. ### Step 1: Identify the known values - Investment 1: Rs 10,500 at x% per annum - Investment 2: Rs 13,500 at (x + 2)% per annum - Total interest earned in 3 years: Rs 7,650 ### Step 2: Write the formula for simple interest The formula for simple interest (SI) is: \[ \text{SI} = \frac{P \times R \times T}{100} \] Where: - \( P \) = Principal amount - \( R \) = Rate of interest - \( T \) = Time in years ### Step 3: Calculate the interest for both investments 1. For the first investment (Rs 10,500 at x% for 3 years): \[ \text{SI}_1 = \frac{10,500 \times x \times 3}{100} = \frac{31,500x}{100} = 315.00x \] 2. For the second investment (Rs 13,500 at (x + 2)% for 3 years): \[ \text{SI}_2 = \frac{13,500 \times (x + 2) \times 3}{100} = \frac{40,500(x + 2)}{100} = 405.00(x + 2) \] ### Step 4: Set up the equation for total interest According to the problem, the total interest from both investments is Rs 7,650: \[ \text{SI}_1 + \text{SI}_2 = 7,650 \] Substituting the values we calculated: \[ 315.00x + 405.00(x + 2) = 7,650 \] ### Step 5: Simplify the equation Expanding the equation: \[ 315.00x + 405.00x + 810.00 = 7,650 \] Combine like terms: \[ 720.00x + 810.00 = 7,650 \] ### Step 6: Solve for x Subtract 810 from both sides: \[ 720.00x = 7,650 - 810 \] \[ 720.00x = 6,840 \] Now, divide both sides by 720: \[ x = \frac{6,840}{720} = 9.5 \] ### Conclusion The rate of interest on the first investment is **9.5%**.
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