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.
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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