A person in vests

Given:

Amount invested: ₹10000 and ₹15000

Interest after 1 year: ₹ 900 for first amount and ₹1200 for second amount.

i). To check whether interest proportional to the investments.

Interest ratio

Investment ratio

If Interest ratio is equal to investment ratio, then only both are in proportion.

As we can observe from above solution, interest ratio is not equal to investment ratio.

i.e.

ii). Ratio of interest to investment

In first case, amount invested is ₹10000 and interest earned is ₹900

∴ Ratio

Now,

In second case, amount invested is ₹15000 and interest earned is ₹1200

∴ Ratio

iii). Annual rate of the scheme

Rate

In first scheme, rate

⇒

∴ Annual rate in this scheme is 9% per annum.

In second scheme, rate

⇒

⇒

⇒ 2 × 4 = 8%

∴ Annual rate in this scheme is 8% per annum.