# A sum is divided between A and B in the ratio of 1: 2. A purchased a car from his part, which 14 2/7% depreciates per annum and B deposited his amount in a bank, which pays him20% interest per annum - Mathematics

MCQ

A sum is divided between A and B in the ratio of 1: 2. A purchased a car from his part, which 14 2/7% depreciates per annum and B deposited his amount in a bank, which pays him20% interest per annum compounded annually. By what percentage will the total sum of money increase after two years due to this investment pattern (approximately).

• 20%

• 26.66%

• 30%

• 25%

#### Solution

20%

Explanation:

Let the sum be x and 2x

Case I

A = "x"[1-100/700]^2=(36"x")/49

Case II

A = "2x"[1+20/100]^2=(72"x")/25

Total A=(36"x")/49+(72"x")/25

Increase=(36"x")/49+(72"x")/25-3"x"

Increase=(25xx36"x"+49xx72"x"-3"x"xx49xx25"x")/(49xx25)

=(753"x")/(49xx25)

% increase=(753"x")/(49xx25xx3"x")xx100
= 20% approx

Concept: Simple and Compound Interest
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