Question : A person lent Rs. 10,000 to B for 3 years and Rs. 6,000 to C for 4 years on Simple interest at the same rate of interest and received Rs. 5,400 in all from both of them as interest. What is the rate of interest (in percent)?
Option 1: 10
Option 2: 12.5
Option 3: 15
Option 4: 20
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Correct Answer: 10
Solution :
Let the rate be $r$.
We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
So, interest from B = $\frac{10000×3×r}{100}=300r$
Also, interest from C = $\frac{6000×4×r}{100}=240r$
According to the question,
⇒ $300r+240r = 5400$
⇒ $540r = 5400$
$\therefore r =10\%$
Hence, the correct answer is 10.
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