David has two grandsons Rodney and Amit. 15 year old Rodney gets some money from David’s wealth and 16 year old Amit gets rest of the money. But Rodney and Amit will get money only when they turn 22 years old. Till then the money is in a bank getting interest at rate 8% compounded annually. When both turn 22, they receive the same amount. How much had David given Amit (in ₹) initially, if total money with David was ₹23400?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 12150.
Let Amit's initial = a, Rodney's = r
r + a = 23400 and r(1.08)7 = a(1.08)6
⇒ r =
So, a(1 + ) = ₹23400
⇒ a() = 23400
⇒ a = 23400 × = ₹12150