If a sum of Rs. 4400 is to be divided among three NGOs in such a way that simple interest for each at 8% per annum after 2, 4 and 6 years respectively remains the same, then find the difference between the share of 1st and 3rd NGO.
1. Rs. 1600
2. Rs. 1800
3. Rs. 2000
4. Rs. 2200
1. Rs. 1600
2. Rs. 1800
3. Rs. 2000
4. Rs. 2200
Correct Answer – Option 1 : Rs. 1600
Given:
A sum of Rs. 4400 is to be divided among three NGOs in such a way that simple interest for each at 8% annum after 2 , 4 , 6 years respectively will be same .
Formula used:
Simple Interest = {Sum (P) × rate of interest (r) × time (t)}/100
Calculation:
Let the sum of 1st, 2nd and 3rd NGO be P1 , P2 and P3 respectively.
S.I of 1st NGO = (P1 × 8 × 2)/100
S.I of 2nd NGO = (P2 × 8 × 4)/100
S.I of 3rd NGO = (P3 × 8 × 6)/100
According to the question,
(S.I)1st = (S.I)2nd = (S.I)3rd
⇒ 2P1 = 4P2 = 6P3
⇒ P1 : P2 : P3 = 24 : 12 : 8 = 6 : 3 : 2
Share of 1st NGO = Rs. (4400 × 6/11) = 2400
Share of 3rd NGO = Rs. (4400 × 2/11) = 800
Difference between the share of first and third NGO = Rs. (2400 – 800) = Rs. 1600
∴ Difference between the share of first and third NGO is Rs. 1600