Question

A person gifted Rs. 2500 to his two children aged 10 years and 15 years respectively with the condition that the sum should be divided in such a way that the two children got the same amount when they reached the age of 30 years. Assuming that the rate of compound interest charged is 5% p.a., what is the value of gift received by each child?

Answer 1

the answer is 1250. I got that answer only.

you can ask others

Answer 2

Given:

$\text { Use the Compound Interest Formula }$

$A=P\left(1+\frac{r}{n}\right)^{n t}$

$P_{1}\left(1+\frac{0.05}{1}\right)^{1(30-10)}=P_{2}\left(1+\frac{0.05}{1}\right)^{1(30-15)}$

$\begin{array}{c}P_{2}=P_{1}(1.05)^{5} \\P_{1}+P_{2}=2500\end{array}$

$\begin{array}{c}P_{1}+P_{1}(1.05)^{5}=2500 \\P_{1}=\frac{2500}{1+(1.05)^{5}} \\P_{1}=\frac{2500}{1+(1.05)^{5}} \\P_{1}=1098.28\end{array}$

$P2=1098.28(1.05)^{5} \\P2=1401.40$

Hence the children aged 10 years receives Rs.1098.28 and the children aged 15 years receives Rs.1401.72.