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Rs 1,00,000 is kept for a boy of 12 year...

Rs 1,00,000 is kept for a boy of 12 years undera trust. Trustee invests the money at 6% per annum and minor boy is given 2500 as pocket money at the end of each year, expenses of trust is Rs 500 per year. What amount will given to the boy when he attain the age of 18 yrs.

A

Rs 1,25,000

B

Rs 1,18,000

C

Rs 1,50,000

D

Rs 1,20,000

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we need to calculate how much money will be available for the boy when he turns 18 years old. The boy is currently 12 years old, so we will be calculating for a total of 6 years. ### Step-by-Step Solution: 1. **Initial Investment**: The initial amount invested in the trust is Rs. 1,00,000. 2. **Interest Rate**: The money is invested at an interest rate of 6% per annum. 3. **Duration**: The boy will receive the money when he turns 18, which means the money will be invested for 6 years (from age 12 to age 18). 4. **Calculate Total Interest Earned**: - The formula for Simple Interest (SI) is: \[ \text{SI} = \frac{P \times R \times T}{100} \] - Where: - \( P \) = Principal amount (Rs. 1,00,000) - \( R \) = Rate of interest (6%) - \( T \) = Time in years (6 years) - Plugging in the values: \[ \text{SI} = \frac{1,00,000 \times 6 \times 6}{100} = \frac{3,60,000}{100} = Rs. 3,600 \] 5. **Total Amount in Trust After 6 Years**: - The total amount in the trust after 6 years will be the principal plus the interest earned: \[ \text{Total Amount} = P + \text{SI} = 1,00,000 + 3,600 = Rs. 1,03,600 \] 6. **Annual Expenses and Pocket Money**: - The trust incurs an expense of Rs. 500 per year and gives the boy Rs. 2,500 as pocket money each year. - Total expenses per year = Pocket Money + Trust Expenses = 2,500 + 500 = Rs. 3,000. - Over 6 years, the total amount given to the boy will be: \[ \text{Total Given} = 3,000 \times 6 = Rs. 18,000 \] 7. **Final Amount Available for the Boy**: - The final amount available for the boy when he turns 18 will be the total amount in the trust minus the total amount given to him: \[ \text{Final Amount} = \text{Total Amount} - \text{Total Given} = 1,03,600 - 18,000 = Rs. 85,600 \] ### Conclusion: The amount that will be given to the boy when he attains the age of 18 years is **Rs. 85,600**.
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