A man borrows Rs.1.2 lakh from a bank at certain rate of simple interest at the beginning of year. After 4 months, he borrows Rs. 1.8 lakh more at double rate of interest. At the end of year, the total interest accrued on both the loans is Rs. 54000. What is the initial rate of interest per annum?

Option 1 - <p><span lang="EN-IN">30 percent</span></p>
Option 2 - <p><span lang="EN-IN">7.5 percent</span></p>
Option 3 - <p><span lang="EN-IN">22.5 percent</span></p>
Option 4 - <p><span lang="EN-IN">15 percent</span></p>
1 Views|Posted 7 months ago
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1 Answer
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7 months ago
Correct Option - 4
Detailed Solution:

Let the interest rate be r percent interest earned from 1.2 Lacs at the end of year

= 1,200,000 * r /100

= 1200r

From 1.8 lakh, = 8/12 * 1, 80,000 * 2r/100

= 2400r

Total interest = 3600r = 54000

r = 15 percent

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