CAT 2019 Question Paper | Quants Slot 2

CAT Questions

Simple Interest-Compound Interest is one of the simpler topics under the CAT Syllabus, however, it requires as much practice as other topics as it is crucial for the CAT exam and we see a lot of questions cropping up in the CAT Question Paper from this topic. The best way to practice simpler topics like this are the CAT previous year paper as they give you a reality check about how questions from such simple topics can also be twisted in a way where even the best of us feel stuck! Strengthen you CAT online preparation by solving these questions so that you glide through smoothly during the upcoming CAT exam!

Question 32 : Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal is [TITA]

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Video Explanation

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Explanatory Answer

The amount on the first investment of Anmol = 12,000 * (1.08) = 12,960
So the Interest on this investment is 12,960 - 12,000 = 960.

The amount on the second investment of Anmol = 10,000 * (1.03)² = 10,609
So the Interest on this investment is 10,609 - 10,000 = 609.

So the total interest on these returns = 960 + 609 = 1,569.

Bimal has to get this as Simple Interst by investing X rupees at 7.5%
That means, X * 0.075 = 1,569
X = 20,920

So, Bimal has to invest 20,920 rupees.

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The question is "Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal is [TITA]"

Hence, the answer is 20920

 

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