If on an average, 20% rate of interest was charged on borrowed funds, then the total borrowed funds used by this company is the given 2 yr amounted to

Answer: Option D

Total interest
= (30% of 130) + (40% of 160)
= 39 + 64
= Rs. 103 lakh
Given that,
This interest is calculated on 20% of borrowed fund.
Hence, borrowed funds
= $$\frac{103\times 100}{20}$$
= Rs 515 lakh