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).
Choose the correct choice from the following options
A) 22.48% B) 20.48% C) 24.48% D) 25.48% E) 26.48%
Let the total money=300   A's part=100   20.48%'s part=200   After 2 years A's part=73.46 (As it depreciates by 14.29% per annum)   After 2 years 20.48%'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%   ANSWER:20.48%
<result>B</result>
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).