What is the ratio of the interest on the first loan to the interest on the second loan ?

For the next two (02) items that follow : A person borrows a sum of ₹16,000 on simple interest at the beginning of a year. After 4 months, ₹24,000 more is borrowed at a rate of interest double the previous one. At the end of the year, the total interest on both the loans is ₹4800.

  1. A. 1 : 2
  2. B. 2 : 3
  3. C. 3 : 4
  4. D. 4 : 5

Correct Answer: A. 1 : 2

Explanation

From the previous calculation, the interest on the first loan is 16000r and the interest on the second loan is 32000r. The ratio is 16000r : 32000r = 1 : 2.

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