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 14 and 15 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 amount given to Raj = x, so Varun gets 1612 – x.
Both invested at 8% compound interest and got same amount after 14 and 15 years respectively.
So, x × (1.08)14 = (1612 – x) × (1.08)15
Divide both sides by (1.08)14:
x = (1612 – x) × 1.08
x = 1612 × 1.08 – x × 1.08
x + x × 1.08 = 1612 × 1.08
x(1 + 1.08) = 1612 × 1.08
x × 2.08 = 1740.96
x = 1740.96 ÷ 2.08 = 837