Arithmetic Ability
Profit and Loss

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Q.

Shamma lends Rs.40,000 to two of her friends. She gives Rs.24,000 to the first at 8% p.a. simple interest. Shamma wants to make a profit of 10% on the whole. The simple interest rate at which she should lend the remaining sum of money to the second friend is:

View Answer

Correct choice: A

Explanation:

The ratio of money she lended is 24000 : 16000 = 3 : 2 Let the rate of interest be R% 8% R% 10 3 : 2 R = 13%.
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