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A person invested some account at the rate of 12% simple interest and a certain amount at rate of 10% simple interest. He received yearly interest of Rs. 130. But if he had interchanged the amounts invested,he would have received Rs. 4 more as interest. How much did he invest at 12% simple interest ?

a) Rs. 400
b) Rs. 500
c) Rs. 700
d) Rs. 800

Answer: b
Explanation: Let the amount invested at 12% be Rs. x and that invested at 10% be Rs. y
$$\eqalign{ & 12\% \,{\text{of }}x + 10\% \,{\text{of }}y = 130 \cr & 12x + 10y = 13000 \cr & 6x + 5y = 6500….{\text{(i)}} \cr & {\text{And,}} \cr & 10\% \,{\text{of }}x + 12\% \,{\text{of }}y = 134 \cr & 10x + 12y = 13400 \cr & 5x + 6y = 6700….{\text{(ii)}} \cr & {\text{Adding (i) and (ii), }} \cr & 11\left( {x + y} \right) = 13200 \cr & x + y = 1200…..({\text{iii}}) \cr & {\text{Subtracting (i) from (ii),}} \cr & – x + y = 200…..({\text{iv}}) \cr & {\text{Adding (iii) and (iv), }} \cr & 2y = 1400\,or\,y = 700 \cr & {\text{Amount invested at 12%}} \cr & = \left( {1200 – 700} \right) \cr & = {\text{Rs}}{\text{. 500}} \cr} $$

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