Multiple choice

Rs 260200 is divided between Ram and Shyam so that the amount that Ram receives in 3 years is the same as that Shyam receives in 6 years. If the interest is compounded annually at the rate of 4% per annum then Rams share (approx) is?

  1. 125000

  2. 137745

  3. 152000

  4. 108200
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let Ram's share be R, Shyam's share be S = 260200 - R. After compound interest: R(1.04)³ = S(1.04)⁶ = (260200 - R)(1.04)⁶. This gives R = (260200 - R)(1.04)³. Solving: R = 260200(1.04)³/[1 + (1.04)³] ≈ 137745.

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