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Question : A, Rs 6,000 is invested at simple interest for 5 years and the annual rate of interest is 15 percent. B, Rs. 5,000 is invested at simple interest for 2 years and the annual rate of interest is 20 percent. What is the ratio of interests earned in A and B respectively?

Option 1: 19 : 12

Option 2: 9 : 4

Option 3: 16 : 5

Option 4: 18 : 11


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: 9 : 4


Solution : Given: A = Rs 6,000 is invested at simple interest for 5 years and the annual rate of interest is 15 percent.
B = Rs. 5,000 is invested at simple interest for 2 years and the annual rate of interest is 20 percent.
We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
The simple interest earned in A,
Simple interest $=\frac{6000\times 15\times 5}{100}=$ Rs. 4,500
The simple interest earned in B,
Simple interest $=\frac{5000\times 20\times 2}{100}=$ Rs. 2,000
The ratio of interests earned in A and B = 4500 : 2000 = 9: 4.
Hence, the correct answer is 9 : 4.

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