New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    Mr. Mathur invested Rs. 40,000 with Bank A for 2 years and Rs. 10,000 with Bank B for 4 years at simple interest and earned Rs. 6,000 as interest. Find the interest rate p.a. if both the banks lend money at the same rate of interest.

    A 4% Correct Answer Incorrect Answer
    B 4.5% Correct Answer Incorrect Answer
    C 5% Correct Answer Incorrect Answer
    D 5.5% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the rate of interest r % per annum. According to the question, (40000 × 2 × r)/100 + (10000 × 4 × r)/100 = 6,000 ⟹ 800 r + 400 r = 6,000 ⟹ 1200r = 6,000 ⟹ r = 5% p.a.

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