Question
Pawan invested Rs. 12,000 in a Systematic Investment
Plan (SIP) that provides compound interest at an annual rate of 25%, compounded yearly for 2 years. After the completion of 2 years, he allocated 65% of the total amount he received to his son and the remaining portion to his brother. Determine the difference between the amounts received by his son and his brother.Solution
ATQ, 
So, amount received by 'Pawan' = 12,000 × (1.25)2 = Rs. 18,750. Therefore, required difference = 18750 × 0.65 - 18750 × 0.35 = 18750 × (0.65 - 0.35) = 18750 × 0.3 = Rs. 5625
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