If on an average, 20% rate of interest was charged on borrowed funds, then the total borrowed funds used by this company in the given two years amounted to
Explanation:
Total interest = (30% of 130) + (40% of 160) = (39 + 64) = Rs.103 lakh. If this total interest is charged on borrowed funds, then (20% of borrowed funds) = 103. Hence, borrowed funds = (5 × 103) = Rs.515 lakh.
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