CAT 2023 Question Paper | Quant Slot 2

CAT 2023 Quant was dominated by Algebra followed by Arithmetic. In Arithmetic, the questions were dominated by topics like Speed-time-distance, Mixture and Alligations. This year, there was a surprise. The questions from Geometry were relatively on the lower side as compared to the previous years. There were 8 TITA Qs this year. Overall this section was at a medium level of difficulty.

Question 12 : Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to

Video Explanation

Explanatory Answer

“Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10,320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year.”

This means, the amount paid by Anil at the end of the third year = $\left( 2,00,000 \times 1.04 ^ { 2 } - 10,320 \right) \times 1.04 ^ { 4 } = 2,40,990.8634 \cong 2,40,991$
So the total amount paid by Anil = $10,320 + 2,40,991 = 2,51,311$
So the total interest paid $= 2,51,311 - 2,00,000 = 51,311$

The question is " Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to "

The answer is '51311'

Choice B is the correct answer.

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