Shortcut Trick
Time difference for Sachin (23 − 13 = 10 yrs) and Chetan (23 − 14 = 9 yrs) is 1 year.
When compound amounts are equal, the principal ratio is inversely proportional to the accumulating factor (1 + R/100)T.
Ratio of Chetan's share to Sachin's share = (1 + 10/100)1 : 1 = 11 : 10.
Chetan's share = 11 / (11 + 10) × 25200 = (11 / 21) × 25200 = 13200.
∴ The correct answer is ₹13200.
Alternate Method
Given:
Total money = ₹25200
Sachin's age = 13 years, Chetan's age = 14 years
Time for Sachin (T1) = 23 − 13 = 10 years
Time for Chetan (T2) = 23 − 14 = 9 years
Rate of Interest (R) = 10% compounded annually
Formula Used:
Amount in Compound Interest = P × (1 + R/100)T
Total Wealth = ₹25200Sachin (₹ S)Chetan (₹ C)Equal Amount(At age 23)10 yrs @ 10%9 yrs @ 10%
Calculations:
⇒ Let Sachin's share be S and Chetan's share be C.
⇒ Amount received by Sachin = S × (1 + 10/100)10 = S × (11/10)10
⇒ Amount received by Chetan = C × (1 + 10/100)9 = C × (11/10)9
⇒ According to the question, both receive the same amount:
⇒ S × (11/10)10 = C × (11/10)9
⇒ S × (11/10) = C
⇒ C / S = 11 / 10
⇒ Ratio of the shares of Chetan and Sachin = 11 : 10
⇒ Sum of ratio parts = 11 + 10 = 21
⇒ Value of 21 parts = ₹25200
⇒ Value of 1 part = 25200 ÷ 21 = ₹1200
⇒ Chetan's share = 11 parts = 11 × 1200 = ₹13200
∴ The correct answer is ₹13200.
Additional Information
Allocation of Principal for Equal Amounts
If two sums P1 and P2 are invested at compound interest rate R for time periods T1 and T2 respectively such that their final amounts are equal, their principal ratio is P1 / P2 = (1 + R/100)T2 − T1.
Effective Compound Interest
In simple interest, the principal remains constant, whereas in compound interest, the principal grows exponentially each year. The uniform multiplying factor per compounding cycle is (1 + R/100).
Difference Between CI and SI
The difference between Compound Interest and Simple Interest for 2 years on principal P at rate R% is given by PR2 / 1002. For 3 years, it is PR2(300 + R) / 1003.