Question

James lent $400 to John for 2 years and $100 to Mike for 4 years at the same compe
he received a total of $60 as interest from them, then the simple interest rate on
money to them is​

Answer 1

Given:

• James lent $400 to John for 2 years and $100 to Mike for 4 years at the same rate of simple interest.
• He recieved a total of $60 as interest from them.

To find: the rate of simple interest

Step-by-step explanation:

Let the rate of simple interest is r% per year.

Then the simple interest received from John is

= $ 400 * 2 * r / 100 = $ 8r

Also the simple interest received from Mike is

= $ 100 * 4 * r / 100 = $ 4r

By the given condition,

8r + 4r = 60

or, 12r = 60

or, r = 5

Answer:

The required rate of simple interest is 5%.