Jain wants to celebrate her daughter’s birth day. This time it was a prestige…

2024

Jain wants to celebrate her daughter’s birth day. This time it was a prestige issue to her, as only last month her neighbor celebrated her son’s birthday in a grand fashion. She borrowed two loans at simple interest, one for Rs.16000 at 5% per annum and the other for Rs.12000 at 5% per annum for the same period. She paid Rs.7000 as total interest. What is the period for which she borrowed the money?

  1. A.

    7 years

  2. B.

    4 years

  3. C.

    5 years

  4. D.

    6 years

Attempted by 2 students.

Show answer & explanation

Correct answer: C

Step-by-Step Solution

To find the time period for which the money was borrowed, we calculate the interest paid per year on the combined loans.

  1. Calculate the annual interest for each loan:

    • Loan 1: Principal = Rs. 16000, Rate = 5% per annum.

      • Annual Interest = (16000 * 5 * 1) / 100 = Rs. 800.

    • Loan 2: Principal = Rs. 12000, Rate = 5% per annum.

      • Annual Interest = (12000 * 5 * 1) / 100 = Rs. 600.

  2. Calculate the total interest per year:

    • Total annual interest = 800 + 600 = Rs. 1400.

  3. Find the time period:

    • Total interest paid = Rs. 7000.

    • Since the annual interest is Rs. 1400, the time period (T) is:

      • T = Total Interest / Total Annual Interest

      • T = 7000 / 1400 = 5 years.

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