Question

Nitin has ₹1224 with him. He divided it amongst his sons Pravin and Rishi and asked them to invest it at 4% rate of interest compounded annually. It was seen that Pravin and Rishi got same amount after 14 and 15 years respectively. How much (in ₹) did Nitin give to Rishi?

• A. 624
• B. 600
• C. 724
• D. 450

Answer 1

Answer:

B. 600

Let Pravin get ₹(P) and Rishi get ₹(R).

$P + R = 1224$

Both amounts grow at 4% compound interest:

$P(1.04)^{14} = R(1.04)^{15}$
Divide both sides by ((1.04)^{14}):

$P = R \times 1.04$
Substitute into total:

$R(1.04) + R = 1224$
$2.04R = 1224$
$R = \frac{1224}{2.04} = 600$

Final Answer:

₹600