A person loses 12.5% of his money and spends 60% of the remaining money. The part of his total money, now left with him, if he deposits this left over money in a bank for 2 years at 8% annual simple rate of interest, he gets 2,030 after 2 years. What was the total initial money with the person? [Answer Limit: 125 words, Marks: 08] [UKPSC-2016]
Aarvik KapoorLearner
Assume that we have 100 rupees
loss 12.5% money, means 100*12.5%= 12.5 rupees
remaining amount 100- 12.5 = 87.5 rupees
spend 60% amount of remaining money -> 87.5*60% = 52.5 rupees
leftover money 87.5 – 52.5 = 35 rupees
Invest the money, then we have formula to calculate interest
P * R * T /100 = interest amount
P= 35
R = 8%
T = 2 years
35 * 8 * 2/ 100 = 5.6 rupees
means, Principal amount + Interest amount = 2,030 rupees
35 + 5.6 = 2,030
40.6 = 2,030
Original amount = 2,030/ 40.6 * 100= 5000 rupees