Multiple choice

Priya decides to invest her savings of Rs. 20,000 in two different banks. She deposits the money in a savings account at Bank X, which offers a simple interest rate of 4% per annum. After this investment matures, she reinvests the total amount (initial deposit + interest earned) in a fixed deposit account at Bank Y, where it is kept for 4 years at a simple interest rate of 7% per annum. The interest earned from Bank X to the interest earned from Bank Y is in the ratio 25 : 42. How long did Priya invest her money in Bank X?

  1. 4 years

  2. 5 years

  3. 6 years

  4. 6.5 years

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let x be years in Bank X. Interest X = 20000 * 0.04 * x = 800x. Total amount = 20000 + 800x. Interest Y = (20000 + 800x) * 0.07 * 4 = 5600 + 224x. Ratio 800x / (5600 + 224x) = 25/42. 33600x = 25(5600 + 224x) = 140000 + 5600x. 28000x = 140000. x = 5.

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