Bank X pays a simple interest of Taka 80 on a principal of Taka 1,000 annually. Bank Y pays a simple interest of Taka 140 on a principal of Taka 1,000 annually. What is the ratio of the interest rates of Bank X to Bank Y?

Bank X pays a simple interest of Taka 80 on a principal of Taka 1,000 annually. Bank Y pays a simple interest of Taka 140 on a principal of Taka 1,000 annually. What is the ratio of the interest rates of Bank X to Bank Y?

A 4:7

B 6:8

C 9:18

D 2:4

Solution

Correct Answer: Option A

ratio of the interest rates of Bank X to Bank Y=80/140=4/7