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The rate of simple interest in two banks X and Y are 2:3. A person wants to deposit his savings in these two banks such that he receives equal quarterly interest from both. What percentage of amount that he should deposit in two banks X and Y?

Take the total savings as S = Sx + Sy, where Sx is the amount to be invested in Bank X and Sy in Bank Y. The inerest rates for the 2 banks have the ratio Ix/Iy = 2/3. The quarterly (simple) interest return from the 2 banks are equal so that Rx = (Ix/4)Sx = Sy(Iy/4) = Ry. This gives Sy = Sx(Ix/Iy) = Sx(2/3), so that Sx + Sy = Sx + (2/3)Sx = S or Sx = S/(1+2/3) = (3/5)S and Sy = (2/5)S.

Randy

Advanced Math

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