Ravi lends Rs. 10,000 to two of his friends. He gives Rs.5,000 to the first at 15% p.a. simple interest. Ravi wants to make a profit of 20% on the whole. The simple interest rate at which he should lend the remaining sum of money to the second friend is
Let Ravilend the sum at x% rate to the second friend. According to the question, 15% × 5000 + x% of 5000 = 20% of 10000 ⇒ 15 × 50 + 50x = 20 × 100 ⇒ 50x = 2000 – 750 ⇒ 50x = 1250 ⇒ x = 25 Hence, the required rate of interest is 25% p.a.
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