Amar and Prem invested certain amount in a bank at a rate of interest of 5%.Interest at the end of the year will be accumulated into the principle amount.At the end of the first year,Amar withdraws 50% of the accumulated amount,while Prem withdraws 11,500 . At the end of the third year,Prem had an accumulated amount equal to that which Amar had at the end of the second year.Amar withdraws Rs 4050 at the end of the second year.The total interest earned by Amar is Rs 3,950 for 3 year.

a)What is the amount initially invested by Amar?
a)35,000 b)40,000 c)31,500 d)30,000

b)What is the initial amount deposited by Prem ?
a)35,000 b)40,000 c)30,000 d)48,000

• by checking the optins
  Amer invest : 40000
  Prem invest: 30000
  
  Amer: Prem:
  first year: first year:
  40000*(5/100)=2000 30000*(5/100)=1500
  end of first year=40000+2000=42000 end of first year=30000+1500=31500
  BUT 50% withdraw=40000/2=21000 But 11500 is withraw: 31500-11500=20000
  
  Second year: 21000*(5/100)=1050 Second year: 20000*(5/100)=1000
  total=21000+1050=22050 total=20000+1000=21000
  BUT 4050 IS WITHDRAWN
  END of second year=22050-4050=18000 Third year:21000*(5/100)=1050
  
  Third year:18000*(5/100)=900
  total=18900
  
  After 3 years Amer interest erned is 3950(2000+1050+900)
  
  ACCUMULATED AMOUNT OF AMER AT SECONDYEAR(1050)== ACCUMULATED AMOUNT OF PREM AT THIRD YEAR(1050)
  
• 9 years agoHelpfull: Yes(12) No(0)