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A cooperative bank lent ₹4000 to Anand at the rate of x% p.a. under simple interest and 5000 to Milind at (x + 0.5)% p.a. under simple interest. After 2 years the bank received 860 as total interest from Anand and Milind. Find the rate of interest per annum at which the amount was lent to Milind.



Answer :

sqdancefan

Answer:

  5%

Step-by-step explanation:

You want to know the interest rate Milind was charged if ₹4000 was lent to Anand at x% and ₹5000 was lent to Milind at (x+.5)% for a total amount of simple interest after 2 years of ₹860.

Interest

The interest in each case is computed as ...

  I = Prt

where P is the amount of the loan at rate r for t years.

If m is Milind's interest rate, then we have ...

  860 = 4000(m-0.5%)(2) +5000m(2)

  860 = 18000m -40

  900 = 18000m

  m = 900/18000 = 0.05

Milind's interest rate was 5%.

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