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    Question

    Ajay and Raju have a total sum distributed between them

    in the ratio of 12:5. Ajay invests his portion at a simple interest rate of 20% per annum for 15 years, whereas Raju invests his portion at a compound interest rate of 20% per annum, compounded annually for 2 years. Determine the ratio of the final amounts they receive after their respective investment periods.
    A 20:3 Correct Answer Incorrect Answer
    B 18:5 Correct Answer Incorrect Answer
    C 5:11 Correct Answer Incorrect Answer
    D 11:12 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ, Let sum invested by ‘Ajay’ and ‘Raju’ be Rs. 12x and Rs. 5x, respectively. Amount received by ‘Ajay’ = (12x × 0.2 × 15) + 12x = 36x + 12x = Rs. 48x Amount received by ‘Raju’ = 5x(1 + 20/100)² = Rs. 7.2x Required ratio = 48x:7.2x = 20:3

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