What is the ratio of the time of Riya and Diya from their respective scheme A and C ........

Data Interpretation ( SBI PO) Case Studies

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Directions: Read the following information and answer the questions carefully:

Schemes Time Rate

A 30 years x 2 – 3x – 10 = 0

B y 2 – y – 6 = 0 20%

C 40 years

Information:

. Riya and Diya are two friends. They invested their sum in schemes A and B respectively. Diya invested Rs. 15000. Sum invested and profit earned by Riya is same.

. Riya also invested some money in scheme C at Simple Interest. Interest earned by her is same as profit earned by her from scheme A

. Rate in scheme C is greater than rate in scheme A.

Condition for choosing interest type:

. If time > rate, then Simple Interest should be considered in any scheme.

. If time < rate, then Compound Interest should be considered.

Note: .

Some values are missing. You have to calculate the according to the questions.

. Take positive values of the equations.

What is the ratio of the time of Riya and Diya from their respective scheme A and C

This questions was previously asked in

SBI PO Prelims (02 Jan, 2022)

View All SBIPO Previous Year Papers

3 : 4

4 : 3

2 : 5

5 : 7

None of the above

Explanation:

- To find the rates for schemes A and B, solve the quadratic equations:

- For Scheme A: \(x^2 - 3x - 10 = 0\). This factors to \((x - 5)(x + 2) = 0\), giving \(x = 5\) (positive value).

- For Scheme B: \(y^2 - y - 6 = 0\). This factors to \((y - 3)(y + 2) = 0\), giving \(y = 3\) (positive value).

- Riya invests in both Scheme A and C. The rate in Scheme C is greater than in Scheme A, which implies the rate in Scheme C is more than 5%.

- Since time > rate for both schemes (A: 30 years, C: 40 years), simple interest should be considered according to the condition, and Riya's profit from A is reinvested in C with the same interest amount.

- Calculating interest:

- Let Riya’s investment in scheme A be \(I\).

- Profit from A (also the investment amount) equals simple interest: \(I \times 5\% \times 30 = 1.5I\).

- Diya invests Rs. 15000 in Scheme B for profit calculation.

- Using simple interest (as 3% is less than 20%): \(15000 \times 3\% \times time = total \interest.

- Solving for the ratio of time (A: 30 years, C: 40 years):

- Ratio of time for Riya (A to C) is 30:40 which simplifies to 3:4.

- Correct Answer: 3:4