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A man invests a certain sum of money at 6% per annum simple interest and another sum at 7% per annum simple interest. His income from interest after 2 years was Rs. 354. One-forth of the first sum is equal to one-fifth of the second sum. The total sum invested was :

Correct answer: B. Rs.2700

  • A. Rs.3100
  • B. Rs.2700
  • C. Rs.2200
  • D. Rs.1800

Explanation

Let the first investment be Rs. x and the second be Rs. y. Since one-fourth of the first equals one-fifth of the second, y = 5x/4; the two-year interest is 2(0.06x + 0.07y) = Rs. 354, giving 0.295x = Rs. 354, x = Rs. 1200 and y = Rs. 1500. The total investment is Rs. 1200 + Rs. 1500 = Rs. 2700. The likely trap is Rs. 3100, usually caused by reversing the ratio between the two investments.

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