Question

A man's income from an investment of rs.2000 at a certain rate of si together with the income from investing rs.1500 at 1% higher for 4 years equal to rs 620 the rate of interest at which invested rs.2000 is

Answer 1

The required rate of interest is 4% per annum.

Answer 2

Let x% be the rate of interest for an investment of rs.2000.

Income from interest for 1 year = 620/4 = Rs 155

According to the question:

$\frac{2000 X x}{100} + \frac{1500 X (x+1)}{100} = 155$

2000 x +1500 x +1500 = 15500

Solving, we get x = 4%