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