Question

Manoj has ₹1612 with him. He divided it amongst his sons Anand and Anil and asked them to invest it at 8% rate of interest compounded annually. It was seen that Anand and Anil got same amount after 13 and 14 years respectively. How much (in ₹) did Manoj give to Anand?

• A. 875
• B. 775
• C. 687
• D. 837

Answer 1

Answer:

D. 837

Let the amounts given to Anand and Anil be (A) and (1612-A) respectively.

Given that both amounts become equal after compound interest at (8%) p.a.:

$A(1.08)^{13}=(1612-A)(1.08)^{14}$

Divide both sides by $((1.08)^{13})$:

A=(1612-A)(1.08)
A=1740.96-1.08A
2.08A=1740.96

$A=\frac{1740.96}{2.08}$

A=837
Therefore, Manoj gave Anand:

=₹837