A sum is divided between A and B in the ratio of 1 : 2. A purchased a car from his part, which depreciates 14 2/7% per annum and B deposited his amount in a bank, which pays him 20% interest per annum compounded annually. By what percentage will the total sum of money increase after two years due to this investment pattern (approximately).

• Let the total money=300
  A's part=100
  B's part=200
  After 2 years A's part=73.46 (As it depreciates by 14.29% per annum)
  After 2 years B's part=288 (using the compound interest formula, A=P(1+r/n)^nt), where
  P=200,r=0.2,n=1,t=2)
  So, After 2 years total amount=361.46
  Therefore % increase in money=(361.46-300)*100/300=20.48%
• 7 years agoHelpfull: Yes(4) No(0)
• A's share=100
  B's share=200
  After 2 years A's share=71.428(100-si)
  si(A)=200/7
  After 2 years B's share=288(by compound interest)
  % increase in total money=(359.428-300)/300
  ans=19.81%
• 7 years agoHelpfull: Yes(0) No(0)