Question

3. Divide Rs.39030 between A and B. so that when their shares are lent out, the amount that A receives in 2 years is the same as what B receives in 4 years. The interest is compounded annually at the rate of 4% per annum.

Answer 1

Given:

The amount that A receives in 2 years is the same as what B receives in 4 years

To find:

The share of A and B

Solution:

Let the share of B is P

so the share of the A will be 39030-P

So according to the question, the amount received by them will be equal with their respective time period.

Amt of B = Amt of A

$P(1+\frac{4}{100})^4 = (39030-P)(1+\frac{4}{100})^2$

$P(1+\frac{4}{100})^2 = (39030-P)$

$P(1+\frac{1}{25})^2 = (39030-P)$

$P(\frac{26}{25})^2 = (39030-P)$

$P\frac{676}{625} = 39030-P$

$676P = 625(39030-P)$

$676P+625P = 625.39030$

$1301P = 625.39030$

$P = 625.30\\P = 18750$

The share of B is ₹18750

The share of A is 39030 - 18750 = ₹20280