Question Details

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.

Options

A

$13,200

B

$12,500

C

$15,000

D

$14,000

Show Answer

Correct Answer :

Option D

$14,000

Rs. 8,000

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:
P2=15000
Matured Amount:
A2=19500
Rate of Interest:
R2=6%

Calculate the simple interest earned:
SI2=A2-P2
SI2=19500-15000=4500

Using the simple interest formula:
SI2=P2×R2×T100
4500=15000×6×T100
4500=900×T
T=4500900=5 years

Step 2: Calculate the initial capital (x) for the first scenario

Given details for the first scenario:
Matured Amount:
A1=20300
Rate of Interest:
R1=9%
Time Period:
T=5 years

The formula relating matured amount and principal under simple interest is:
A1=x+x×R1×T100
A1=x1+R1×T100

Substitute the given values into the formula:
20300=x1+9×5100
20300=x1+45100
20300=x145100
20300=1.45x

Solving for x:
x=203001.45
x=14000

Thus, the value of x is $14,000.

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