For the next two (02) items that follow:
At the beginning of a year a person borrows an amount of Rs. 16,000 at simple interest. After 4 months, a further amount of Rs. 24,000 is borrowed at twice the rate of interest of the first. At the end of the year, the total interest on both the loans is Rs. 4,800.
What is the ratio of interests on the first and second loans?
A.1 : 2✓ Correct
B.2 : 3
C.3 : 4
D.4 : 5
Explanation
With r = 10%, interest on first loan = 160r = 1600. Interest on second loan = 320r = 3200. Ratio = 1600 : 3200 = 1 : 2.
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