Rs. 20400 was divided in two parts and then invested. One part invested at 6.25% for 8 yearsyields the same interest as the other part invested at 7% for 5 years. What is the value of smallerpart?
A)9600
B)8400
C)10100
D)6500

Question

Quizplus · Accepted Answer

The interest earned from both parts is the same. Using the formula for simple interest, $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the rate of interest, and $t$ is the time in years. Let the first part be $x$, so the second part is $20400 - x$. Setting up the equations for both parts and equating them gives us $x \times 6.25\% \times 8 = (20400 - x) \times 7\% \times 5$. Solving this equation for $x$ gives us the value of the smaller part, which is Rs. 8400.

Rs 20400 Was Divided in Two Parts and Then Invested