Question

Thomas deposited 7000 rupees in all in two banks. The rate of interest is 8% in one bank and 11% in the other. After a year, he got 680 rupees as interest from both banks together. How much did he deposit in each bank?

Answer 1

Let money deposited by Thomas in the first and the second bank be Rs.x and Rs.y respectively.

Total money deposited = Rs.7000

⇒ x + y = 7000

⇒ x = 7000 − y … (1)

Rate of interest in the first bank = 8%

Rate of interest in the second bank = 11%

Time period = 1 year

Simple interest received from both the banks together = Rs.680

Simple interest =

Simple interest from the first bank

Simple interest from the second bank

Adding equation (2) and equation (3):

From equation (1), we have:

x = 7000 − 4000 = 3000

Thus, the money deposited by Thomas in the first and the second bank is Rs.3000 and Rs.4000 respectively.