Some amount of money was lent at 6% per annum simple interest. After one year,6800 is repaid and the rest of the amount is repaid at 5% per annum. If the second year's interest is 11/20 of the first year's interest,find what amount of money was lent out.

Solution(By Examveda Team)

Let the Amount of money lent out be Rs. P.

First Year Interest = (P * 6)/100 = 0.06P.

Amount to be returned = P + 0.06P = 1.06P.

Amount Returned = 6800.

Balance Amount,

= 1.06P - 6800

Second Year Interest = [(1.06P - 6800) * 5]/100 = (1.06P - 6800)/20.

Given,

Second Year Interest,

= 11/20 * 0.06P

Now,

(1.06P - 6800)/20 = (11*0.06P)/20

1.06P - 6800 = 11* 0.06P

0.4P = 6800

P = 17,000.

Amount lent = Rs. 17,000