Rs. 260200 is divided b/w A and B so that the amount that A receives in 4 years is the same as that B receives in 6 years. If the interest is compounded annually at rate of 4% per annum, then A's share is?
Answer & explanation
Correct answer: option 2
A = P ( 1 + \(\frac{R}{100}\))T
A's share amount = x ( 1 + \(\frac{4}{100}\))4
B's amount = (260200 - x) (1 + \(\frac{4}{100}\))6
according to question
x ( 1 + \(\frac{4}{100}\))4 = (260200 - x)(1 + \(\frac{4}{100}\))6
x = (260200 - x)(1 + \(\frac{4}{100}\))2
x = (260200 - x) (\(\frac{676}{625}\))
on solving x = 135200