CAT 2018 Question Paper | Quants Slot 2
CAT Previous Year Paper | CAT SI and CI Questions | Question 28
CAT Questions CAT 2018 Question Paper is a prime example as to why one solve the CAT Previous Year Paper. This is a slightly tricky question from Compound Interests taken from CAT Previous Year Paper 2018. Have a go at it before taking a look at the video explaination. To enroll and begin your CAT Preparation with 2IIM, click here: 2IIM's Online CAT Preparation.
Question 28 : Gopal borrows Rs. X from Ankit at 8% annual interest. He then adds Rs. Y of his own money and lends Rs. X+Y to Ishan at 10% annual interest. At the end of the year, after returning Ankit’s dues, the net interest retained by Gopal is the same as that accrued to Ankit. On the other hand, had Gopal lent Rs. X+2Y to Ishan at 10%, then the net interest retained by him would have increased by Rs. 150. If all interests are compounded annually, then find the value of X + Y. [TITA]
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Explanatory Answer
Method of solving this CAT Question from SI and CI
Let us draw a flow diagram to understand the transaction
Gopal receives 10% of X + Y from Ishan as interest, from which he pays the interest of 8% of X to Ankit
So, Gopal would gain 2% of X + 10% of Y as interest and Ankit would gain 8% Interest
Its given that both the interest values are same, so 2% X + 10% Y = 8% X
3% X = 5% Y --- (1)
Its also given that, if Gopal lend Rs. X + 2Y to Ishan at 10% interest, the net interest retained would increase by Rs. 150
So, the increase in 10% Y accounts for Rs. 150
10% Y = 150 => Y = Rs. 1500
Substituting the value in (1), we get 5 × 1500 = 3 × X => X = 2500
So, X + Y = 2500 + 1500 = Rs 4000
The question is "Gopal borrows Rs. X from Ankit at 8% annual interest. He then adds Rs. Y of his own money and lends Rs. X+Y to Ishan at 10% annual interest. At the end of the year, after returning Ankit’s dues, the net interest retained by Gopal is the same as that accrued to Ankit. On the other hand, had Gopal lent Rs. X+2Y to Ishan at 10%, then the net interest retained by him would have increased by Rs. 150. If all interests are compounded annually, then find the value of X + Y. [TITA]"
Hence, the answer is Rs 4000
