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A man invests a certain principal amount of money at 6.5% per annum simple interest and another principal amount of money at 7.5% per annum simple interest. Without reinvestment his income from interest after 3 years is Rs. 400. One fourth of first principal amount is equal to one fifth of the second principal amount. Find the approximate total sum that was invested.
Let $$'y'$$ be the principal amount invested at a 6.5% per annum rate.
Let $$'x'$$ be the principal amount invested at a 7.5% per annum rate.
It is given that, $$\frac{y}{4}=\frac{x}{5}$$............(1)
It is also given that without reinvestment, his income from interest after 3 years is Rs. 400
i.e., $$y\times\ 3\times\ 0.065+x\times\ 3\times\ 0.075=400$$
$$\frac{4x}{5}\times\ 3\times\ 0.065+x\times\ 3\times\ 0.075=400$$
$$0.381x=400$$
Hence, $$x=Rs.\ 1049.87$$, then $$y=\frac{4x}{5}=\frac{1049.87\times\ 4}{5}=Rs.\ 839.90$$
Total invested sum = $$y+x=$$ = $$1889.77\approx Rs.1890$$
Option (A) is correct.
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