Two loans, one total — Aptitude Question
Two loans, one total: A man lends ₹5,000 at 6% and ₹4,000 at 8% simple interest for 2 years. Answer and worked solution on CodeKairo.
- Topic: Simple & Compound Interest
- Section: Quantitative Aptitude
- Difficulty: Easy
- Time target: 60 seconds
Question
A man lends ₹5,000 at 6% and ₹4,000 at 8% simple interest for 2 years. What is his total interest?
Options
- ₹1,200
- ₹1,240
- ₹1,280
- ₹1,320
Show the answer and the worked solution
Correct answer: B. ₹1,240
Worked solution
- First: 5,000 × 6 × 2/100 = ₹600.
- Second: 4,000 × 8 × 2/100 = ₹640.
- Total = ₹1,240.
Answer: ₹1,240.
The idea
Two independent loans, so compute and add. Averaging the rates would be wrong because the principals differ.
Shortcut. Per year: 6% of 5,000 = 300 and 8% of 4,000 = 320, so ₹620 a year and ₹1,240 over two.
Common trap. ₹1,280 — swapping the rates (8% on ₹5,000 and 6% on ₹4,000), which gives ₹800 + ₹480.
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