Try These | | | | | | | | | Question #1 | | | Kelly plans to put her graduation money into an account and leave it there for 4 years while she goes to college. She receives $750 in graduation money that she puts it into an account that earns 4.25% interest. How much will be in Kelly’s account at the end of four years? | | A. $127.50 | | B. $754.0425 | | C. $877.50 | | D. $1275 | | | | | | Question #2 | | | Randy wants to move his savings account to a new bank that pays a better interest rate of 3.5% so that he can earn $100 in interest faster than at his old bank. If he moves $800 to the new bank, how long will it take for him to earn the $100 in interest? | | A. 3.57 years | | B. 0.357 years | | C. 0.28 years | |

A father left a will of Rs.35 lakhs between his two daughters aged 8.5 and 16 such that they may get equal amounts when each of them reach the age of 21 years. The original amount of Rs.35 lakhs has been instructed to be invested at 10% p.a. simple interest. How much did the elder daughter get at the time of the will? (1) | Rs. 17.5 lakhs | | (2) | Rs. 21 lakhs | | (3) | Rs. 15 lakhs | | (4) | Rs. 20 lakhs |

Correct Answer - (2)

Solution:

Let Rs.x be the amount that the elder daughter got at the time of the will. Therefore, the younger daughter got (3,500,000 - x).

The elder daughter’s money earns interest for (21 - 16) = 5 years @ 10% p.a simple interest

The younger daughter’s money earns interest for (21 - 8.5) = 12.5