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Two different finance companies declare fixed annual rate of interest on the amounts invested with them by investors. The rate of interest offered by these companies may differ from year to year depending on the variation in the economy of the country and the banks rate of interest. The annual rate of interest offered by the two Companies P and Q over the years are shown by the line graph provided below.

Annual Rate of Interest Offered by Two Finance Companies Over the Years.

Q1: If two different amounts in the ratio 8:9 are invested in Companies P and Q respectively in 2002, then the amounts received after one year as interests from Companies P and Q are respectively in the ratio?

A 2:3

B 3:4

C 6:7

D 4:3

ANS:D - 4:3

Let the amounts invested in 2002 in Companies P and Q be Rs. 8x and Rs. 9x respectively.

Then, interest received after one year from Company P = Rs. (6% of 8x)
= Rs. 48 x.
100
and interest received after one year from Company Q = Rs. (4% of 9x)
= Rs. 36 x.
100
Therefore Required ratio =
( 48 x )
100
= 4 .
( 36 x )
100
3



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