A man invests Rs. 3,000 at the rate of 5% per annum. How much more should he invest at the rate of 8%, so that he can earn a total of 6% per annum?
- Rs. 1,200
- Rs. 1,500
- Rs. 1,700
- Rs. 2,000
Present rate of interest = 5% (Cheaper quantity)
New rate of interest = 8% (Dearer Quantity)
Mean rate of interest = 6%
Ratio of Dearer Value : Cheaper Value = m-c : d-m = 6-5 : 8-6 = 1 : 2
Dearer Value = Rs.3000/2 = Rs.1500
The correct option is B.