Multiple choice

Equal amounts are deposited in two banks each at 3.5% pa for 12 years and 8.5 years respectively. If the difference between their interests is 189.875 then what is the amount?

  1. 1500

  2. 1550

  3. 1600

  4. 1650

  5. Can’t be determined

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let P be the amount. SI1 = P × 3.5 × 12/100 = 0.42P. SI2 = P × 3.5 × 8.5/100 = 0.2975P. Difference = 0.42P - 0.2975P = 0.1225P = 189.875. Solving: P = 189.875/0.1225 = 1550.