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    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.
    A Rs.5000 Correct Answer Incorrect Answer
    B Rs.5625 Correct Answer Incorrect Answer
    C Rs.2200 Correct Answer Incorrect Answer
    D Rs.3200 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    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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