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A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?
  • a)
    5%
  • b)
    3.46%
  • c)
    4.5%
  • d)
    None of these
Correct answer is option 'B'. Can you explain this answer?
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A sum of Rs. 725 is lent in the beginning of a year at a certain rate ...
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A sum of Rs. 725 is lent in the beginning of a year at a certain rate ...
Given:
Amount lent in the beginning of the year = Rs. 725
Amount lent after 8 months = Rs. 725 + Rs. 362.50 = Rs. 1087.50
Interest earned from both loans = Rs. 33.50

Let the rate of interest for the first loan be x% per annum
Then, the rate of interest for the second loan will be 2x% per annum

To calculate the original rate of interest, we can use the following formula:
Simple interest = (P * R * T) / 100

Where,
P = Principal amount
R = Rate of interest
T = Time period

Calculation:
For the first loan,
Principal amount (P) = Rs. 725
Rate of interest (R) = x%
Time period (T) = 1 year

Simple interest for the first loan = (725 * x * 1) / 100 = 7.25x

For the second loan,
Principal amount (P) = Rs. 362.50
Rate of interest (R) = 2x%
Time period (T) = 4/12 years (8 months)

Simple interest for the second loan = (362.50 * 2x * 4/12) / 100 = 2.9x

Total interest earned = 7.25x + 2.9x = 10.15x

Given, total interest earned = Rs. 33.50
So, 10.15x = 33.50
x = 3.30

Therefore, the original rate of interest is 3.30%

Answer: Option B (3.46%)
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A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?a)5%b)3.46%c)4.5%d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?a)5%b)3.46%c)4.5%d)None of theseCorrect answer is option 'B'. Can you explain this answer? for Quant 2025 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?a)5%b)3.46%c)4.5%d)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Quant 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?a)5%b)3.46%c)4.5%d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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