Ashok has ₹1612 with him. He divided it amongst his sons Raj and Varun and asked them to invest it at 8% rate of interest compounded annually. It was seen that Raj and Varun got same amount after 15 and 16 years respectively. How much (in ₹) did Ashok give to Raj?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 837.
Let the money given to Raj = R and to Varun = V
After compound interest at 8%
Raj’s amount after 15 years = R × (1.08)15
Varun’s amount after 16 years = V × (1.08)16
Since both amounts are equal:
R × (1.08)15 = V × (1.08)16
⇒ R = 1.08 × V
Total money = 1612
R + V = 1612
1.08V + V = 1612
2.08V = 1612
V = 1612 ÷ 2.08 = 775
Now R = 1.08 × 775 = 837