Question

Ketan has two grandsons Mahesh and David. 15 year old Mahesh gets some money from Ketan's wealth and 16 year old David gets rest of the money. But Mahesh and David will get money only when they turn 22 years old. Till then the money is in a bank getting interest at rate 10% compounded annually. When both turn 22, they receive the same amount. How much had Ketan given David (in ₹) initially, if total money with Ketan was ₹25200?

• A. 12000
• B. 13550
• C. 11750
• D. 13200

Answer 1

Answer:

D. 13200

Let the amounts initially given be:

• Mahesh = ₹(M) (age 15 → will get after 7 years)

• David = ₹(D) (age 16 → will get after 6 years)

Given:

M + D = 25200
]

Both amounts become equal at age 22 with 10% compound interest:

$M(1.1)^7 = D(1.1)^6$

Divide both sides by $((1.1)^6)$:

$M(1.1) = D$
$D = 1.1M$

Substitute into total:

$M + 1.1M = 25200$
$2.1M = 25200$
$M = 12000$
$D = 1.1 \times 12000 = 13200$