Question

Suresh for 2 year invested rupees 500 in SBI. He also invested rupees 300 in ICICI for 4 years. At the end he received RS. 220 from both bank as simple interest. What must have been rate of interest ?​

Answer 1

Answer:

10%

Step-by-step explanation:

Answer 2

Given:

Amount of money invested by Suresh in SBI = 500

The time period of investment in SBI = 2 years

Amount of money invested by Suresh in ICICI = 500

The time period of investment in ICICI = 2 years

Amount of money received as interest from both the banks = 220

To find:

Rate of interest in both banks.

Solution:

We will first calculate the rate of interest in SBI bank.

Given,

Amount of money invested = 500

Time period = 2 years

Interest received = 220

It is given that it was simple interest, therefore the amount of interest received for each year will be equal and constant.

Interest received in one year = 220/2 = 110

The annual rate of interest will be calculated by calculating how much percent of 500 is 110

Let the rate of interest = x

x = $\frac{110}{500}$ x 100

x = 22

Therefore Suresh received interest of 22% per annum from SBI bank.

Similarly,

We will now calculate the rate of interest in ICICI bank.

Given,

Amount of money invested = 500

Time period = 4 years

Interest received = 220

It is given that it was simple interest, therefore the amount of interest received for each year will be equal and constant.

Interest received in one year = 220/4 = 55

The annual rate of interest will be calculated by calculating how much percent of 500 is 55

Let the rate of interest = y

y = $\frac{55}{500}$ x 100

y = 11

Therefore Suresh received interest of 11% per annum from ICICI bank.