Question

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?

• A. 500
• B. 600
• C. 1200
• D. 1500

Answer 1

The Correct Option is B

To solve this problem, we calculate Ramesh’s income from both investments. 
The total income is calculated as 6% of the total investment. 
Then, by subtracting the income from the Rs 1,200 invested at 5%, we find that Rs 600 needs to be invested at 8% interest to achieve the desired total income.