An initial capital of $x yields a total matured amount of $20,300 at 9% per annum simple interest over the exact same time frame in which a principal of $15,000 matures to $19,500 at 6% per annum simple interest. Find the value of x.
Correct Answer :
$14,000
Solution :
The correct option is $14,000.
To find the value of the initial capital x, we first calculate the time period T using the second investment scenario, and then use that time frame to solve for x in the first scenario.
Step 1: Find the time period (T) using the second investment scenario
Given details for the second scenario:
Principal:
Matured Amount:
Rate of Interest:
Calculate the simple interest earned:
Using the simple interest formula:
Step 2: Calculate the initial capital (x) for the first scenario
Given details for the first scenario:
Matured Amount:
Rate of Interest:
Time Period:
The formula relating matured amount and principal under simple interest is:
Substitute the given values into the formula:
Solving for x:
Thus, the value of x is $14,000.
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