Question
Aman invested Rs. 'a' and Rs. (a + 2100) in SIP 'P' and
'Q', respectively, in a way that the amounts received from both SIPs after 2 years are equal. If SIP 'P' and 'Q' provide compound interest (compounded annually) at rates of 25% p.a. and 20% p.a., respectively, then determine the value of 'a'.Solution
We can say that, The amount received on investing Rs. ‘a’ for 2 years at 25% interest p.a., compounded annually-  = a × (1 + 25/100)2 = Rs. {a × (5/4)2} The amount received on investing Rs. (a + 2100) for 2 years at 20% interest p.a., compounded annually. = (a + 2100) × (1 + 20/100)2 = Rs. {(a + 2100) × (6/5)2} ATQ. a × (5/4)2 = (a + 2100) × (6/5)2 Or (25a/16) = (a + 2100) × (36/25) Or (25a/16) × (25/36) = a + 2100 Or 625a/576 = a + 2100 Or 49a = 2100×576 Or a = 24685.7
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