Question

Divide Rs. 28,730 between A and B so that when their shares are lent out at 10 per cent compound interest compounded per year, the amount that A receives in 3 years is the same as what B receives in 5 years.

Answer 1

Lets share of A is X and Share of B is 28730-x

Now Amount after 3 years at 10% for A is = x(1.1)³

And Amount after 5 years at 10% for B is = (28730-x)(1.1)⁵

According to question

x(1.1)³ =(28730-x)(1.1)⁵

⇒x =(28730-x)(1.1)²

⇒ $\frac{x}{28730-x}=1.21$

⇒ x = 34763.3 - 1.21x

⇒ x = $\frac{34763.3}{2.21}=15730$

A's share is Rs 15730,

B's share is Rs 13000