A donor deposits ₹8,00,000 in a trust that earns 10% simple interest annually. The interest is used to distribute three annual awards. If the second and third awards are ₹35,000 and ₹20,000, respectively, what is the value of the first award?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹25,000.
Interest per year = (10/100) × 800000 = 80000
Three awards sum = 80000
Second award + Third award = 35000 + 20000 = 55000
First award = 80000 - 55000 = 25000