Multiple choice

A sum of money was invested in a bank at 6% p.a. simple interest for 2 years. If it had been invested in mutual fund at the rate of 8% p.a. simple interest for 4 years, then the earnings would have been Rs. 1000 more. What was the sum invested?

  1. Rs. 4500

  2. Rs. 5000

  3. Rs. 3500

  4. Rs. 5500

  5. Rs. 6000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let sum be P. Interest 1 = P * 0.06 * 2 = 0.12P. Interest 2 = P * 0.08 * 4 = 0.32P. Difference = 0.32P - 0.12P = 0.20P = 1000. P = 1000 / 0.20 = 5000.

AI explanation

The earnings from the bank would be the principal multiplied by 6 multiplied by 2 divided by 100, which is 0.12 times the principal. The earnings from the mutual fund would be the principal multiplied by 8 multiplied by 4 divided by 100, which is 0.32 times the principal. The difference is 0.32 times the principal minus 0.12 times the principal, so 0.20 times the principal equals 1000, meaning the principal is 5000.

Keep practicing — related questions