Shortcut Trick
Time period for Baban = 24 − 11 = 13 years.
Time period for Rakesh = 24 − 12 = 12 years.
Ratio of their initial shares = 1 : (1 + 5/100)13 − 12 = 1 : 21/20 = 20 : 21.
Total parts = 20 + 21 = 41 parts → ₹24600.
1 part = ₹24600 ÷ 41 = ₹600.
Rakesh's share = 21 parts = 21 × 600 = ₹12600.
∴ The correct answer is ₹12600.
Alternate Method
Given:
Total money with Atul = ₹24600
Rate of interest (R) = 5% compounded annually
Baban's age = 11 years, Rakesh's age = 12 years
Maturity age for both = 24 years
Formula Used:
Amount in compound interest: A = P(1 + R/100)n
Baban (B)
Age 11
Age 24
t = 13 yrs
Rakesh (R)
Age 12
Age 24
t = 12 yrs
A = A
Calculations:
⇒ Time for Baban (t1) = 24 − 11 = 13 years
⇒ Time for Rakesh (t2) = 24 − 12 = 12 years
⇒ Let Baban's initial share be B and Rakesh's share be R.
⇒ Amount received by Baban = Amount received by Rakesh
⇒ B(1 + 5/100)13 = R(1 + 5/100)12
⇒ B(1 + 1/20)13 = R(1 + 1/20)12
⇒ B(21/20) = R
⇒ R / B = 21 / 20
⇒ Let Rakesh's share be 21x and Baban's share be 20x.
⇒ Total money = 21x + 20x = 41x
⇒ 41x = 24600
⇒ x = 24600 ÷ 41 = 600
⇒ Rakesh's share = 21x = 21 × 600 = ₹12600
∴ The correct answer is ₹12600.
Additional Information
Dividing a Sum into Parts for Equal Amounts
When a sum P is divided into two parts P1 and P2 such that their amounts are equal after t1 and t2 years respectively at compound interest rate R, the ratio of their initial shares is inversely proportional to their multiplying factors: P1 : P2 = (1 + R/100)t<sub>2</sub> : (1 + R/100)t<sub>1</sub>.
Compound Interest Formula
The final maturity amount after n years at compound interest is calculated as A = P(1 + R/100)n, where P is principal, R is rate of interest, and n is the compounding time period.
Simple Interest vs Compound Interest
For the first compounding period, SI and CI are equal. From the second period onwards, CI grows exponentially faster because interest is earned on both the initial principal and the accumulated interest of previous periods.