Compound Interest Practice Test 2

Question : 39 of 40

Marks: +1, -0

Two friends A and B jointly lent out Rs. 81,600 at 4% per annum compound interest, payable annually. 2 years after A gets the same amount as B gets after 3 years. The investment made by B was :

Rs. 30,000
Rs. 40,000
Rs. 45,000
Rs. 38,000

Validate

Solution:

Let investment of B and A be Rs. x and Rs. (81600 – x) respectively, then

(81600-x)(1+4/100)^2=x(1+4/100)^3

⇒26/25x=81600-x

⇒51/25x=81600

∴x=81600×25/51=40,000

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