The ratio of simple interest in two banks are in the ratio 4:5. Tom wants to deposit his total savings in both banks such that he receives the same half yearly interest from both banks. He should deposit his savings in both banks in the ratio.

Simple Interest

The Simple Interest (S.I.) formula is a way to figure out how much interest will accrue on a given principal sum of money. Have you ever run out of pocket money and borrowed money from your siblings? Or perhaps lent him? What occurs when you take out a loan? You put that money to the use for which you originally borrowed it. When your parents give you pocket money for the following month, you return the money at that time. This is how lending and borrowing operate at home.

However, borrowing money is not unrestricted in the actual world. You frequently need to take out a loan from a bank to borrow money. In addition to the loan amount, you must pay back additional funds based on the loan amount and the length of time you borrowed the money. We refer to this as simple interest. This phrase is frequently used in banking.

Summary:

The ratio of simple interest in two banks are in the ratio 4:5. Tom wants to deposit his total savings in both banks such that he receives the same half yearly interest from both banks. He should deposit his savings in both banks in the ratio.

The ratio of simple interests in two banks are in the ratio 4:5. Tom wants to deposit his total savings in both banks such that he receives the same half-yearly interest from both banks. He should deposit his savings in both banks in a ratio of 5:4.