Question

Mr.'A' wants to divide Rs. 5521 between his two sons 'B' and 'C', such that B's share at the end of 5 years is equal to C's share at the end of 7 years, compounded annually at the rate of 10%. Calculate how much money did B get?
1. Rs.3075
2. Rs. 2075
3. Rs. 2025
4. Rs.3025

Answer 1

Correct Answer - Option 4 : Rs.3025

Given∶

Total money = Rs. 5521

B's share at the end of 5 years is equal to C's share at the end of 7 years, compounded annually.

rate of interest = 10%.

Formula Used∶

Basics of compound interest and Ratios.

Calculation∶

According to question,

B's share × (1 + 0.1)⁵ = C's share × (1 + 0.1)⁷

⇒ B/C = (1.0)⁷/(1.1)⁵

⇒ B/C = (1.1)² = 121/100

So, B's share = (121/100) × 5525 = Rs. 3025

∴ B will get Rs. 3025.