Question

Veeru invested Rs 10000 at 5% simple annual interest, and exactly after two years, Joy invested Rs. 8000 at 10% simple annual interest. How many years after Veeru's investment, will their balances, i.e., principal plus accumulated interest, be equal?

Answer 1

Calculation:

The sum of rupees invested by Veeru and Joy is nothing but the principal (P)

Let the time after Joy's investment, when the balances become equal be x years.

So, we get:

10000 + {[10000 × 5 × (x + 2)]/100} = 8000 + {[8000 × 10 × x]/100}

⇒ 2000 = 800x – 500x – 1000

⇒ x = 10 

∴ The balances will be equal after Veeru's investment, after a time period = 10 + 2 = 12 years