Difficulty: Easy
Correct Answer: ₹ 750
Explanation:
Introduction / Context:
With two rates and a known total interest, set up one linear equation in the unknown portion invested at the higher rate. This is a direct application of simple interest with a single time period (1 year).
Given Data / Assumptions:
Concept / Approach:
Interest = 0.08x + 0.06(1000 − x) = 75. Solve for x to get the principal at 8%.
Step-by-Step Solution:
Verification / Alternative check:
Check: 8% of 750 = 60; 6% of 250 = 15; total = 75, consistent.
Why Other Options Are Wrong:
The other values produce interest totals different from ₹ 75 upon substitution into 0.08x + 0.06(1000 − x).
Common Pitfalls:
Assuming equal split or averaging rates without regard to the interest total constraint.
Final Answer:
₹ 750
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