A person on retirement gets Rs. 3,20,000 from his gratuity

Home » Aptitude » Simple interest » Question

A person on retirement gets Rs. 3,20,000 from his gratuity and P.F. He wants to invest this amount in Post Office and Bank in such a way that he earns a total interest of Rs. 27,600 every year. If the annual rate of interest in Post Office and Bank be respectively 9% and 8%, What are the amounts invested in Post Office and Bank respectively ?

1. Rs. 200000, Rs. 120000
2. Rs. 180000 and Rs. 140000
3. Rs. 185000, Rs. 135000
4. None of these

Let the amount in Post office be Rs. p.
∴ Amount in Bank = Rs. (320000 – p)
We can find the SI with the help of given formula ,

SI =	Principal × Time × Rate
	100

∴	p × 9	+	(32000 - p) × 8	= 27600
	100		100

⇒ 9p + 2560000 – 8p= 2760000
⇒ p = 2760000 – 2560000 = Rs. 200000
∴ Amount in bank = Rs. (320000 – 200000) = Rs. 120000