Priya borrowed ₹40,000 from two lenders under simple-interest terms:
Lender M charges 8% p.a. (simple interest),
Lender N charges 5% p.a. (simple interest)
Priya kept both loans for exactly 5 years and then paid the accumulated interest, which was ₹14,000. If she had interchanged the principal amounts, her five-year interest outgo would have been ₹2,000 less. How much did she borrow from Lender M at 8% p.a.?

Question

Priya borrowed ₹40,000 from two lenders under simple-interest terms:
Lender M charges 8% p.a. (simple interest), 
Lender N charges 5% p.a. (simple interest) 
Priya kept both loans for exactly 5 years and then paid the accumulated interest, which was ₹14,000. If she had interchanged the principal amounts, her five-year interest outgo would have been ₹2,000 less. How much did she borrow from Lender M at 8% p.a.?

Accepted Answer

1. Let the amount from M be $x$. Then from N is $40000-x$.

2. Five-year simple interest from M: $0.08	imes5	imes x=0.4x$. From N: $0.05	imes5	imes(40000-x)=10000-0.25x$.

3. Total interest: $0.4x+10000-0.25x=0.15x+10000=14000$. So $0.15x=4000$.

4. Solve: $x=4000/0.15=26666.67\approx₹26,667$. So option **(c)** is correct.

FINAL_ANSWER: <c>

Answer

Answer

Answer