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Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?
- a)12%
- b)10%
- c)5%
- d)12.5%
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Ramesh and Suresh invested same amount of money in two banks for 2 ye...
In case of simple interest we get the same amount of interest each year.
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Hence amount of interest Suresh will get in first year = 500/2 = Rs. 250
If the same amount is invested and interest rate is same then in first year the interest obtained is same whether it is simple interest or compound interest.
Hence compound interest obtained in 1st year = Rs. 250
Therefore amount of interest obtained in the 2nd year = Rs. (525 - 250) = Rs. 275
Hence rate of interest = 100 x (275 - 250)/250 = 10%
Most Upvoted Answer
Ramesh and Suresh invested same amount of money in two banks for 2 ye...
Given Data:
- Ramesh received Rs. 525 as compound interest after 2 years.
- Suresh received Rs. 500 as simple interest after 2 years.
Approach:
- Let the principal amount be P and the rate of interest be R%.
- For compound interest, the formula is A = P(1 + R/100)^n, where A is the amount after n years.
- For simple interest, the formula is A = P(1 + R/100*n), where A is the amount after n years.
Calculations:
- For Ramesh: A = P(1 + R/100)^2. Given A = P + 525.
- For Suresh: A = P + 500.
Solving for Ramesh:
- P(1 + R/100)^2 = P + 525
- (1 + R/100)^2 = 1 + 525/P
- (1 + R/100)^2 = (P + 525)/P
Solving for Suresh:
- P + 500 = P(1 + R/100)*2
- P + 500 = P + 2PR/100
- 500 = 2PR/100
- R = 500*100/2P = 50/P
Substitute R in Ramesh's equation:
- (1 + 50/P)^2 = (P + 525)/P
- 1 + 100/P + 2500/P^2 = (P + 525)/P
- 100 + 2500/P = 525/P
- 2500 = 525P - 100P
- 2500 = 425P
- P = 2500/425 = 100/17
Rate of Interest:
- R = 50/(100/17) = 50*17/100 = 8.5%
Therefore, the rate of interest offered by the banks is 8.5%.
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Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer?
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Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer?.
Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramesh and Suresh invested same amount of money in two banks for 2 years which offer interest at the same rate, but Ramesh invested in a bank which offers compound interest and Suresh invested in a bank which offers simple interest. After two years Ramesh got Rs. 525 as interest and Suresh got Rs. 500 as interest. What is the rate of interest offered by the banks?a)12%b)10%c)5%d)12.5%Correct answer is option 'B'. Can you explain this answer?.
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