Q. A sum of ₹ 10,000 is divided into two parts such that one part is invested at 8% per annum and the other at 6% per annum. If the annual interest earned from both investments is ₹ 700, what is the amount invested at 8%?

The correct answer is (C) ₹5,000

Explanation:

Let’s solve this step by step.

1) Let’s say the amount invested at 8% is x
Then amount invested at 6% = (10,000 – x)

2) Given that total interest = ₹700
Interest from 8% investment = 8% of x = 0.08x
Interest from 6% investment = 6% of (10,000 – x) = 0.06(10,000 – x)

3) We can write the equation:
0.08x + 0.06(10,000 – x) = 700

4) Simplify right side of equation:
0.08x + 600 – 0.06x = 700

5) Combine like terms:
0.02x + 600 = 700
0.02x = 100
x = 5,000

6) Verification:
Amount at 8%: ₹5,000 → Interest = ₹400
Amount at 6%: ₹5,000 → Interest = ₹300
Total interest = ₹700 ✓

Therefore, the amount invested at 8% is ₹5,000.

The answer is (C) ₹5,000.