Lakshman gave Rs 1200 on loan Some amount he gave at 4 per annum on simple interest and remaining at......

Lakshman gave Rs. 1200 on loan. Some amount he gave at 4% per annum on simple interest and remaining at 5% per annum on simple interest. After two years, he got Rs. 110 as interest. Find the amounts given at 4% and 5% per annum on simple interest are, respectively.

Let the amount be x and (1200-x).
(x*4*2)/100 + ((1200-x)*5*2)/100 = 110
=> 8x/100 + (12000 – 10x)/100 = 110
=> -2x + 12000 = 11000
=> 1000/2 = 500= x
The required amounts are 500 and 700.

Hence, option 1 is the correct answer.

By: Amit Kumar