Q.₹1200 is deposited for 4 years and ₹2000 for 3 years in a bank at the same rate of simple interest. If the total interest earned is ₹594, what is the annual rate of interest (percentage)?

Let the annual rate of interest be \(x\%\) So, the interest on ₹1200 for 4 years is: \[ \frac{1200 \times 4 \times x}{100} = 48x \text{ rupees} \] And the interest on ₹2000 for 3 years is: \[ \frac{2000 \times 3 \times x}{100} = 60x \text{ rupees} \] According to the question: \[ 48x + 60x = 594 \Rightarrow 108x = 594 \Rightarrow x = \frac{594}{108} = \frac{11}{2} = 5\frac{1}{2} \] ∴ The annual rate of interest is 5½%
Similar Questions