Multiple choice

A Sum of Rs. 14280 is to be divided between Anshika and Aman who are respectively 18 and 19 years old, in such a way that if their shares will be invested at 4% per annum at compound interest, they will receive equal amounts on attaining the age of 21 years. The present share of Anshika is -

  1. 8450

  2. 8712

  3. 7000

  4. 8000

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

Let Anshika's share be x and Aman's share be (14280 - x). Anshika's money grows for 3 years (age 18 to 21) while Aman's grows for 2 years (age 19 to 21). At 4% compound interest: x(1.04)^3 = (14280 - x)(1.04)^2. Simplifying: 1.04x = 14280 - x, so 2.04x = 14280. Therefore x = 7000.

Keep practicing — related questions