CAT 2020 Question Paper | Quants Slot 1

CAT Questions

This question is from Simple and Compound Interest. When it comes to preparing for CAT, Arithmetic is considered the backbone of CAT quant. With every passing year, CAT exam has increased the importance of Arithmetic questions from topics such as Simple and compound interest. This question is about two people investing a certain sum of money. We have to find the number of years in which one person's invested money will yield the same amount as the other person.

Question 3 : Veeru invested Rs 10000 at 5% simple annual interest, and exactly after two years, Joy invested Rs 8000 at 10% simple annual interest. How many years after Veeru’s investment, will their balances, i.e., principal plus accumulated interest, be equal?

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Video Explanation

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Explanatory Answer

Let assume its equal after N years
Veeru’s investment after N years = 10000 + 10000 × \\frac{5}{100}) × N
Joy’s investment after N years = 8000 + 8000 × \\frac{10}{100}) × (N – 2)
Equating both
10000 + 10000 × \\frac{5}{100}) × N = 8000 + 8000 × \\frac{10}{100}) ×(N – 2)
10000 + 500N = 8000 + 800N – 1600
3600 = 300N
N = 12

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The answer is, " 12"