A father left a will of ₹ 16400 for his two sons aged 17 and 18 years. They must get equal amounts when they are 20 years, at 5% compound interest. Find the present share of the younger son.
Aptitude
Compound Interest
Difficulty: Medium
Choose an option
-
A₹ 8000
-
B₹ 8200
-
C₹ 8400
-
D₹ 8800
Answer
Correct Answer: ₹ 8000
Explanation
### Concept & Equating Future Amounts
When a total sum is divided such that future amounts are equal, the present shares must be inversely proportional to their respective compound interest growth factors.
$$Amount = P\left(1 + \frac{R}{100}\right)^T$$
### Step-by-Step Solution
1. **Identify the time periods:**
Younger son (age 17) gets interest for $20 - 17 = 3$ years. Let his share be $A$.
Elder son (age 18) gets interest for $20 - 18 = 2$ years. Let his share be $B$.
2. **Set up the equality:**
Both must have equal amounts at age 20. The rate $R = 5\%$.
$A \times (1 + 0.05)^3 = B \times (1 + 0.05)^2$
$A \times (1.05)^3 = B \times (1.05)^2$
3. **Find the ratio of their shares:**
Dividing both sides by $(1.05)^2$:
$A \times 1.05 = B$
$B = A \times \frac{105}{100} = A \times \frac{21}{20}$
So, the ratio $A : B = 20 : 21$.
4. **Calculate the younger son's share ($A$):**
Total sum = $A + B = 16400$
Total ratio units = $20 + 21 = 41$
1 unit = $\frac{16400}{41} = 400$
Younger son's share ($A$) = $20 \times 400 = 8000$.
### Exam Strategy & Shortcut
Difference in time = 1 year. This means the elder son's share is just the younger son's share multiplied by $(1 + R/100)$ once.
Ratio of younger to elder = $100 : (100 + R) = 100 : 105 = 20 : 21$.
Younger share = $\frac{20}{(20+21)} \times 16400 = \frac{20}{41} \times 16400 = 8000$.
### Common Pitfall
A common error is confusing which son gets the larger principal. The younger son has *more* time to earn interest, so his initial principal ($A$) must be *smaller* to reach the same final amount.
### Final Answer
Therefore, the correct answer is **₹ 8000**.