Question Details

Answer the following question based on the information provided.

Liam deposited x dollars in account A for three years at a rate of 12% p.a. simple interest, whereas Sophia deposited (x+4000) dollars in account B for two years at 20% p.a. compound interest. Find the amount deposited by Sophia if the total interest accumulated from both accounts is 3360 dollars.

Options

A

3500

B

6000

C

4500

D

5200

E

2000

Show Answer

Correct Answer :

Option B

6000

Solution :

The correct option is 6000.


Step 1: Understand the given details for both accounts

Account A (Liam's deposit):
Principal (PA) = x
Rate of interest (RA) = 12% p.a. (Simple Interest)
Time (TA) = 3 years

Account B (Sophia's deposit):
Principal (PB) = x+4000
Rate of interest (RB) = 20% p.a. (Compound Interest)
Time (TB) = 2 years

Total interest accumulated from both accounts = 3360 dollars


Step 2: Calculate simple interest from Account A (IA)

Using the simple interest formula:

IA=P×R×T100

IA=x×12×3100=0.36x


Step 3: Calculate compound interest from Account B (IB)

Using the compound interest formula:

IB=P×1+R100T-1

IB=(x+4000)×1+201002-1

IB=(x+4000)×1.22-1

IB=(x+4000)×(1.44-1)

IB=0.44(x+4000)=0.44x+1760


Step 4: Formulate the equation using total interest

IA+IB=3360

0.36x+0.44x+1760=3360

0.80x+1760=3360

0.80x=3360-1760

0.80x=1600

x=16000.80=2000


Step 5: Compute Sophia's deposit

Sophia deposited (x+4000) dollars.

Sophia's deposit=2000+4000=6000

Hence, the amount deposited by Sophia is 6000 dollars.

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