Compound Interest Practice Test 4

Question : 10 of 40

Marks: +1, -0

Mr Mehra plans for the higher education expenses of his two sons aged 15 and 12. He plans to divide Rs 15 lakh into two equal parts and invest them in two different plans such that his sons may have access to Rs 21 lakh each when they reach the age of 21. He looks for plans that will give him a simple interest per annum. The rates of interest of the plans for his younger son and his elder son should be:

5% and 7.5%
8% and 12%
10% and 15%
20% and 30%
None of these

Validate

Solution:

P_1

= Rs 7,50,000

T_1

= 6 years

R = r_1

SI_1

= 21 lakh - 7.5 lakh = 13.5 lakh

P_2

= Rs 7,50,000

T_2

= 9 years

R = r_2

SI = 13.5 lakh

SI_1={P_1×T_1×R}/100

⇒13.5\lakh={7,50,000×6×r_1}/100

r_1={13,50,000×100}/{7,50,000×6}

=30%

Similarly

r_2={13,50,000×100}/{7,50,000×9}

=20%

Go to Question:

Prev Question

Next Question