Question 100

A person invest certain amounts in two banks in such a way that the simple interest fro one bank at 10% per annum for 5 years is equal to that from another bank at 9% per annul/ for 6 years, then the ratio between the two amounts

Solution

Simple interest from 10% interest rate for 5 years is$$=a×0.10×5=0.50a.$$(a is the principal amount).

Simple interest from 9% interest rate for 6 years is$$=b×0.09×6=0.54b.$$(b is the amount invested in this case)

According to the question,

$$0.50a=0.54b$$

or,$$a/b=54/50=27/25.$$

So, C is correct choice.

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