Compound Interest Practice Test 1

Question : 10 of 40

Marks: +1, -0

Divide the sum of Rs 15,494 between A and B so that A’s share at the end of 9 years may be equal to B’s share at the end of 11 years, compound interest being 20% per annum. Then A’s share is:

Rs 8,000
Rs 9,140
Rs 9,144
Rs 9,414

Validate

Solution:

Let A’s share = Rs x
Let B’s share = (15,494 - x)
According to the statement,
A’s Amount

=x(1+20/200)^9=x(6/5)^9

B’s amount

=(15,494-x)(1+20/100)^11

=(15,494-x)(6/5)^11

A’s amount = B’s amount

x(6/5)^9=(15,494-x)(6/5)^11

x=(15,494-x)(36/25)

x=15,494×36/25-36/25x

25x=5,57,784-36x

x=9,144

A’s Share = Rs 9, 144

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