Suresh for 2 years invested Rs. 500 in SBI. He also invested Rs. 300 in ICICI for 4 years. At the end he received Rs. 220 from both banks as simple interest. What must have been rate of interest?
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10% 12% 11% 5.50% |
10% |
Principle -500 , 300, Time - 2, 4 years, SI = 220 (combined) Formulae for SI = \(\frac{\text{P Χ R Χ T} }{ 100}\) Putting the values in the formulae: According to the question: 220 = \(\frac{\text{500 Χ R Χ 2} }{ 100}\) + \(\frac{\text{300 Χ R Χ 4} }{ 100}\) 220 = 10R + 12R 220 = 22R R = 10% |