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Solutions
Given:
Ratio of the rates of Simple Interests in two banks A and B = 5 : 4
Half-yearly interests from both the banks are equal.
Concept:
Simple Interest (SI) = (P × R × T)/100;
where P = principal, R = Rate of Interest, T = Time period.
Calculation:
Let the principal amounts invested in banks A and B be A and B, respectively.
Let the respective rates of simple interest for banks A and B be 5x and 4x
Using the formula for SI,
we get: SI for bank A = (A × 5x × 0.5)/100
Also, SI for bank B = (B × 4x × 0.5)/100
Since the SI is the same for both the banks,
we get: (A × 5x × 0.5)/100 = (B × 4x × 0.5)/100
⇒ 2.5A = 2B
⇒ A/B = 4/5
∴ The ratio in which deposit should be made in the banks A and B should be 4 : 5.
Alternate Method
Let the principal amounts deposited in banks A and B be P1 and P2 respectively.
Given that the interest rates are in the ratio 5 : 4, let's assume:
Rate for bank A, R1 = 5x
Rate for bank B, R2 = 4x
Time, T = 1/2 year (6 months)
As the interests received are equal: I1 = I2
⇒ P1 × R1 × T = P2 × R2 × T
⇒ P1 × 5x × 1/2 = P2 × 4x × 1/2
⇒ P1 × 5x = P2 × 4x
⇒ P1/P2 = 4 / 5
∴ The ratio in which he should deposit the savings in banks A and B is 4 : 5.