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Siva lent Rs. 6000 to Prasad for 2 years and Rs. 1500 to Gopi for 4 years at same rate of interest and received altogether from both Rs. 900 as simple interest. The rate of interest is:

Question

Siva lent Rs. 6000 to Prasad for 2 years and Rs. 1500 to Gopi for 4 years at same rate of interest and received altogether from both Rs. 900 as simple interest. The rate of interest is:

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Solution

To find the rate of interest, we first need to understand the formula for simple interest, which is I = PRT/100, where I is the interest, P is the principal amount, R is the rate of interest, and T is the time.

In this case, Siva lent Rs. 6000 to Prasad for 2 years and Rs. 1500 to Gopi for 4 years. The total interest received from both is Rs. 900.

We can set up two equations based on the information given:

6000R2/100 + 1500R4/100 = 900

Solving this equation for R (the rate of interest) gives us:

120R + 60R = 900

180R = 900

R = 900 / 180

R = 5

So, the rate of interest is 5%.

This problem has been solved

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