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.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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