Sign in
Please select an account to continue using cracku.in
↓ →
An amount of Rs 10000 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
We are told that,Β 10000 is deposited in bank A for a certain number of years at a simple interest of 5% per annum.Β
Let us say that the number of years is x
Total value of the deposit after x years is,Β $$10000\left(1+x\left(0.05\right)\right)$$
On maturity, the total amount received is deposited in bank B for another 5 years at a simple interest of 6% per annum
Here we know the years and the interest rate,Β
$$10000\left(1+x\left(0.05\right)\right)\left(1+5\left(0.06\right)\right)$$
$$10000\left(1+\left(0.05\right)x\right)\left(1.3\right)$$
Interest received from Bank A isΒ $$\left(x\left(0.05\right)\right)10000$$
Interest received from Bank B isΒ $$0.3\left(10000\left(1+x\left(0.05\right)\right)\right)$$
This ratio is given to be 10:13.Β
$$\dfrac{x\left(0.05\right)}{0.3\left(1+x\left(0.05\right)\right)}=\dfrac{10}{13}$$
$$0.65x=3+0.15x$$
$$0.5x=3$$
$$x=6$$
Hence the number of years the money was invested in Bank A is 6 years.Β
Click on the Email βοΈ to Watch the Video Solution
Create a FREE account and get:
Book Free CAT Mentorship
Get personalized CAT strategy from a 99%iler
500+ students mentored
OTP Verification
Enter the 6-digit code sent to your phone
Booking Summary
Enter OTP
Didn't receive the OTP?
Start your IIM journey with the right preparation and crack CAT 2026.
Educational materials for CAT preparation