CAT 2020 Question Paper | Quants Slot 2

Arithmetic forms around 50% of the total questions asked in the Quantitative Aptitude section of the CAT exam and hence needs to be prepared with the utmost focus and attention. Simple Interest/Compound Interest forms a part of the Arithmetic section. The best way to steer yourself in the right direction of online CAT preparation is to go through the CAT previous year paper and try to solve these questions without looking at the solution. Don't wait for you to finish your preparation to try these questions. Try this SICI question right away!
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Question 8 : For the same principal amount, the compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125. Then the principal amount in rupees is

Video Explanation

Explanatory Answer

P(1.05)² – P = CI
P × 3 × \\frac{3}{100}) = SI
CI = 0.1025 P
SI = 0.09P
CI – SI = 0.0125P = \\frac{125}{10000}) P = 1125
P = 90000

The question is "For the same principal amount, the compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125. Then the principal amount in rupees is"

Hence, the answer is, " 90000"