Shortcut Trick
When final amounts are equal, the ratio of their principals is inversely proportional to their compound multiplying factors.
Time for Mahesh = 7 years, Time for David = 6 years. Difference = 1 year.
Ratio of Mahesh's share to David's share = 1 : (1 + 10/100)1 = 10 : 11.
Total parts = 10 + 11 = 21 parts → ₹25200
David's share = (11 ÷ 21) × 25200 = 11 × 1200 = ₹13200
∴ The correct answer is ₹13200.
Alternate Method
Given:
Total wealth with Ketan = ₹25200
Age of Mahesh = 15 years
Age of David = 16 years
Target age for receiving money = 22 years
Rate of compound interest = 10% per annum
Formula Used:
Amount in Compound Interest: A = P(1 + R/100)T
Where P = Principal, R = Rate of interest, T = Time period
Total Wealth: ₹25200
Mahesh
Age: 15 years
David
Age: 16 years
T = 7 yrs, R = 10%
T = 6 yrs, R = 10%
Same Final Amount (A)
Calculations:
⇒ Time period for Mahesh = 22 − 15 = 7 years
⇒ Time period for David = 22 − 16 = 6 years
⇒ Let the initial amount given to Mahesh be M and to David be D.
⇒ M + D = 25200
⇒ Since their final amounts are equal:
⇒ M × (1 + 10/100)7 = D × (1 + 10/100)6
⇒ M × (1.1)7 = D × (1.1)6
⇒ M × 1.1 = D
⇒ M / D = 1 / 1.1 = 10 / 11
⇒ This means the total amount is divided in the ratio 10 : 11.
⇒ Total ratio parts = 10 + 11 = 21
⇒ Amount given to David = (11 ÷ 21) × 25200
⇒ David's share = 11 × 1200 = 13200
∴ The correct answer is ₹13200.
Additional Information
Division of Wealth for Equal Final Amounts (CI)
When a sum is divided into two parts such that their amounts become equal after t1 and t2 years respectively at rate R%, the ratio of their parts is P1 : P2 = 1 : (1 + R/100)t2 − t1.
Effective Compound Interest Rate
For a fixed rate of R% applied for 2 years, the effective equivalent interest rate can be directly calculated using the successive percentage formula: R + R + (R × R) ÷ 100.
Compound Interest Formula
The total accumulated amount under compound interest is A = P(1 + R/100)n, and the interest generated is CI = A − P.