Multiple choice

An amount of Rs. 10,000 is deposited in bank A for a certain number of years at a simple interest of 5% per annum. On maturity, the total amount received is deposited in bank B for another 5 years at a simple interest of 6% per annum. If the interests received from bank A and bank B are in the ratio 10 : 13, then the investment period, in years, in bank A is

  1. 4

  2. 6

  3. 3

  4. 5
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let T be the time in Bank A. Interest A = 10000 * 5 * T / 100 = 500T. Amount after A = 10000 + 500T. Interest B = (10000 + 500T) * 6 * 5 / 100 = 3000 + 150T. Ratio 500T / (3000 + 150T) = 10/13. 6500T = 30000 + 1500T, 5000T = 30000, T = 6.

AI explanation

Let the investment period in bank A be T years. Using the simple interest formula, the interest from bank A is 10000 * 5 * T / 100 = 500T. The total amount received from bank A is 10000 + 500T, which becomes the principal for bank B. The interest from bank B is (10000 + 500T) * 6 * 5 / 100 = 3000 + 150T. Given the ratio of interests is 10 : 13, we have 500T / (3000 + 150T) = 10 / 13. Solving 6500T = 30000 + 1500T yields 5000T = 30000, so T = 6. The investment period in bank A is 6 years.

Keep practicing — related questions