A deposited a total of Rs.25,500 in a bank in the names of his grandsons P and Q who are presently 13 years and 14 years old, respectively. He divided his money in such a way that they get equal amounts upon attaining the age of 25 years. If the bank gives interest at a rate of 4% p.a. compounded annually, then how much has been deposited in Q’s name?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. Rs.13,000
Formula used:
A = P(1 + R/100)T
Where, A = Amount, P = principal, R = rate and T = time
Calculations:
Let,
Money P get = x (deposited for 12 years)
Money Q get = 25500 - x (deposited for 11 years)
According to the question;
⇒ x(1 + 4/100)12 = (25500 - x)(1 + 4/100)11
⇒ x(1 + 4/100) = (25500 - x)
⇒ 26x/25 = 25500 - x
⇒ (26x/25) + x = 25500
⇒ 51x/25 = 25500
⇒ x = 500 × 25
⇒ x = 12500
Hence, the money deposited in Q’s name = 25500 - 12500 = 13000