Multiple choice

An amount of Rs. 12,000 is deposited in bank X for a certain number of years at a simple interest rate of 4% per annum. Upon maturity, the total sum is reinvested in bank Y for 5 years at a simple interest rate of 5% per annum. If the interest earned from bank X and bank Y is in the ratio 2 : 3, then the number of years the amount was invested in bank X is:

  1. 4

  2. 5

  3. 6

  4. 7

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

Interest from Bank X = (12000 * 4 * T) / 100 = 480T. The total sum after Bank X is 12000 + 480T. Interest from Bank Y = ((12000 + 480T) * 5 * 5) / 100 = (12000 + 480T) * 0.25 = 3000 + 120T. Ratio (480T) / (3000 + 120T) = 2/3. 1440T = 6000 + 240T. 1200T = 6000. T = 5.

AI explanation

Let the number of years the amount was invested in bank X be T. The simple interest earned from bank X is calculated as 12000 * 4 * T / 100 = 480T. The maturity amount reinvested in bank Y is 12000 + 480T, and the interest earned from bank Y is (12000 + 480T) * 5 * 5 / 100 = 3000 + 120T. Given the ratio of the interests from bank X and bank Y is 2 : 3, we write the equation 480T / (3000 + 120T) = 2 / 3. Solving 1440T = 6000 + 240T yields 1200T = 6000, so T = 5.

Keep practicing — related questions