📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Mr. Mathur invested Rs. 40,000 with Bank A for 2 years

    and Rs. 10,000 with Bank B for 4 years at simple interest and earned Rs. 6,000 as interest. Find the interest rate p.a. if both the banks lend money at the same rate of interest.
    A 4% Correct Answer Incorrect Answer
    B 4.5% Correct Answer Incorrect Answer
    C 5% Correct Answer Incorrect Answer
    D 5.5% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the rate of interest r % per annum. According to the question, (40000 × 2 × r)/100 + (10000 × 4 × r)/100 = 6,000 âźą 800 r + 400 r = 6,000 âźą 1200r = 6,000 âźą r = 5% p.a.

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question