Word Problem

A borrowed a sum of $1200 at the beginning of a year. After 4 moths , $1800 more is borrowed at the rate of interest double the previous one . At the end of the year , sum of interest on both the loans is 4216. What is first rate of interest per year ?
A. 9% B.6% C.8% D.12%

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riz_gmat: Junior | Next Rank: 30 Posts; Posts: 20; Joined: Thu Sep 26, 2013 9:05 pm; Thanked: 5 times

by riz_gmat » Sat Oct 19, 2013 2:42 am

S.I (1) = P1 N1 R1 / 100 = 1200 * 1 * R1 / 100
S.I (2) = P2 N2 R2 / 100 = 1800 * 2/3 * 2R1 / 100

4216 = S.I (1) + S.I (2) = 12 R1 + 24 R1 = 36 R1
Hence [spoiler]R1 = 12 %[/spoiler]

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