Question

A person borrowed Rs.8,000 at a certain rate of interest for 2 years and then Rs.10,000 at 1% lower than the first. In all he paid Rs.2500 as interest in 3 years. Find the two rates at which he borrowed the amount.

Answer 1

Answer:

He borrowed Rs. 8000 on 10% interest and Rs. 10000 on 9% interest

Step-by-step explanation:

Let the rate at which he borrowed initially be r%

Interest in two years on Rs. 8000

$I=\frac{8000*2*r}{100} =160r$

After two years he borrows Rs. 10,000 on r-1 % interest

Therefore,

Interest paid in one year on Rs. 10000

$I'=\frac{10000*1*(r-1)}{100} =100(r-1)$

Total interest paid = Rs. 2500

or I + I' = 2500

$\implies 160r+100(r-1)=2500$

$\implies 160r+100r-100=2500$

$\implies 260r=2600$

$\implies r=2600/260=10$

Thus

He borrowed Rs. 8000 on 10% interest

He borrowd Rs. 10000 on 9% interest