Question

Question 125

A memorial trust donates ₹ 500000 to a school, the interest on which is to be used for awarding 3 scholarships to students obtaining first three positions in the school examination every year. If the donation earns an interest of 12% per annum and the values of the second and third scholarships are ₹ 20000 and ₹ 15000 respectively, then find out the value of the first scholarship.

Answer 1

Donation amount = ₹ 500000
Rate of interest for each year = 12% per annum
Time period = 1yr
Interest received after 1 yr $=\frac{500000\times 12\times 1}{100}=5000\times 12$
= ₹ 60000
Scholarship amount for second position = ₹ 20000
Scholarship amount for third position = ₹ 15000
$\therefore$ Remaining amount for first position student = 60000 - (20000 + 15000)
= 60000 - 35000 = ₹ 25000