Question

A bank lent rs.4000 to person a at a certain rate of s.i and rs.5000 to b at 1/2 % more than that of

a. after 2 years the bank received rs.860 as interest from both a and

b.find the rate of interest p.a at which the amount was lent to b?

Answer 1

Hey....... Bank loan amount for A=4000
Bank loan amount for B=5000

Interest method used by the bank is simple interest

also given that the amount is lent to B at a rate 1/2% higher than that of A
so if money is lent to A at x%
then for B it will be x + 1/2%


we know that
Simple Interest
= (Principal amount*Time*Rate)/100

a)amount recieved after 2years is 860 from both A and B

so we will subsitute the values in the formula

SI={4000*2*x/100} + {5000*2*(x+1/2%)}/100 =860
=(80*x) + (100*(x+ 0.5))=860
=80x + 100x + 100(0.5) = 860
= 180x + 50= 860
= x = 810/180 =4.5%
therefore percentage at which amount is lent to A is 4.5%

percentage at which amount is lent to B is 1/2times higher than B...So 1/2 =0.5
4.5+0.5=5%

therefore percentage at which amount is lent to B is 5%