Ramesh invests 1,200 at 5% simple interest. How much additional money must he invest at 8% simple interest so that his total annual income will be equal to 6% of his total investment during this year?

Question

Ramesh bought a mobile from a local store. He paid 1/6 of the price via UPI and 1/3 of the price via cash. He agreed to pay the balance amount a year later. While paying back the balance amount, Ramesh paid 10% interest on the balance amount. If the interest paid was Rs. 6000, what was the original price of the mobile?

Answer 1

To determine the solution, we first calculate Ramesh's income from each investment.
The combined income equals 6% of the total investment.
Subtracting the income from the Rs 1,200 investment at 5% reveals that an investment of Rs 600 at 8% interest is required to reach the target total income.

Ramesh invests 1,200 at 5% simple interest. How much additional money must he invest at 8% simple interest so that his total annual income will be equal to 6% of his total investment during this year?

The Correct Option is B

Solution and Explanation

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