Multiple choice

A man deposited the same amount of money in two banks separately. In these banks, the rates of interest are 8% and 9.5% per annum. After 4 years, he got a difference of Rs. 54000 in the simple interest (S.I.) from those banks. What was the amount of money deposited?

  1. 5,00,000

  2. 8,00,000

  3. 9,00,000

  4. 6,00,000

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

SI difference = P × (R2 - R1) × T/100. 54000 = P × (9.5 - 8) × 4/100 = P × 1.5 × 4/100 = 6P/100. Therefore P = 54000 × 100/6 = Rs.9,00,000. The same amount was deposited in both banks at different rates.