Multiple choice

Divide Rs.1301 between A and B, so that the amount of A after 7 years is equal to the amount of B after 9 years, the interest being compounded at 4% per annum. What is the smaller part?

  1. 525

  2. 625

  3. 676

  4. 484

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let A and B be the initial amounts. After compound interest: A(1.04)^7 = B(1.04)^9. This gives A = B(1.04)^2 = 1.0816B. Since A + B = 1301, we get 2.0816B = 1301, so B = 625 (the smaller share). A = 676 is the larger part.

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