A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:

5%
7%
7 1⁄8%
10%

Correct Answer: 10%

Explanation:

Let the rate be R% p.a.

Then,	❨	5000 x R x 2	❩	+	❨	3000 x R x 4	❩	= 2200.
		100				100

⟹ 100R + 120R = 2200

⟹ R =	❨	2200	❩	= 10.
		220

∴ Rate = 10%.

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