Question

A father left a will of 12300 for his two sons aged 15 and 16 years. they must get an equal amount when they are 20 years, at 5% compound interest. What is the present share of the younger son?
1. 6000
2. 7000
3. 8000
4. 9000

Answer 1

Correct Answer - Option 1 : 6000

Given:

A father left a will of 12300

Concept:

Compound Interest = P × {(1 + R/100)^T - 1}, Where, P = Principle, R = Rate, and T = Time

Calculation:

Let the shares of the younger and elder sons be X and (12300 - X)

⇒ The amount after 5 years = Amount of (12300 - X) after 4 years

⇒ X × (1 + 5/100)⁵ = (12300 - X) × (1 + 5/100)⁴

⇒ 21X/20 = 12300 - X

⇒ 41X/20 = 12300

⇒ X = 6000

∴ The required result will be 6000.