CAT Quantitative Ability Questions | CAT Percentage, Profit & Loss questions

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FundaMakers as a team has taken a painstaking step to bring you all the video solutions of the Simple Interest and Compound Interest (SI & CI) asked in the Previous Year CAT exam. CAT question bank offered by FundaMakers is a power-packed topic-wise compilation of the entire CAT previous year questions. Questions from the Simple Interest and Compound Interest (SI & CI) topic are some of the most scoring questions in the QA section. Other than the formulaic knowledge, it also tests your clarity about the topic. To maximize your CAT score make use of FundaMakers CAT Question Bank. Questions from CAT previous years examination papers have been incorporated. Let’s get started with CAT Past Year Simple Interest and Compound Interest (SI & CI) Questions.

CAT/2018.2

Question . 52

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.

Explanatory Answer

Method of solving this CAT Quantitative Ability Question from Percentage, Profit & Loss question

Correct Answer:

Amount of interest paid by Ishan to Gopal if the borrowed amount is Rs. (X+Y) = 10/100 * (X + Y) =0.1 (X+Y)
Gopal also borrowed Rs. X from Ankit at 8% per annum. Therefore, he has to return Ankit Rs. 0.08X as the interest amount on borrowed sum.
Hence, the interest retained by gopal = 0.1 (X+Y) - 0.08X = 0.02X + 0.1 Y ... (1)
It is given that the net interest retained by Gopal is the same as that accrued to Ankit.
Therefore, 0.08X = 0.02X + 0.1 Y
=>X = (5/3)Y ...(2)
Amount of interest paid by Ishan to Gopal if the borrowed amount is Rs. (X+2Y) = 10/100 * (X + 2Y) = 0.1X+0.2Y
In this case the amount of interest retained by Gopal = 0.1 X+0.2Y - 0.08X = 0.02X + 0.2Y ... (3)
It is given that the interest retained by Gopal increased by Rs. 150 in the second case.
=>(0.02X + 0.2Y) - (0.02X + 0.1 Y) = 150
=> Y = Rs. 1500
By substituting value of Y in equation (2), we can say that X = Rs. 2500
Therefore, (X+Y) = Rs. 4000.

4000

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