Multiple choice

Two equal amounts are deposited in two different banks at 8% per annum and 12% per annum for 5 five years at simple interest. If the difference between their interest is Rs 2850. What is the amount deposited in Bank?

  1. 14250

  2. 12550

  3. 14750

  4. 12750

  5. None of these
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A Correct answer
Explanation

Let the amount deposited in each bank be P. Simple interest at 8% for 5 years = P × 8 × 5 / 100 = 0.4P. Simple interest at 12% for 5 years = P × 12 × 5 / 100 = 0.6P. The difference is 0.6P - 0.4P = 0.2P = 2850. Solving: P = 2850 / 0.2 = Rs 14250.

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