Raju lent Rs. 400 to Ajay for 2 years and Rs. 100 to Manoj for 4 years and received together from both Rs. 60 as interest. Find the rate of interest, simple interest being calculated.

A. 5%

B. 6%

C. 8%

D. 9%

Answer: Option A

Solution(By Examveda Team)

$$\eqalign{ & {\text{Let}}\,{\text{rate}}\,{\text{is}}\,R\% \cr & {\text{According}}\,{\text{to}}\,{\text{the}}\,{\text{question}}, \cr & \left[ {\frac{{400 \times 2 \times R}}{{100}}} \right] + \left[ {\frac{{100 \times 4 \times R}}{{100}}} \right] = 60 \cr & 8R + 4R = 60 \cr & {\text{Hence}},\,R = 5\% \cr} $$