CAT Quantitative Ability Questions | CAT Percentage, Profit & Loss questions
FundaMakers is the Best CAT Online Coaching In India. Now prepare for CAT anytime with FundaMakers. We provide well-ordered syllabus coverage for both offline and online CAT preparation batches. FundaMakers brings to you the power-packed, well-structured CAT previous year question bank with more than 4000+ CAT Past Year questions. In the Quantitative Aptitude section, one of the most frequently asked questions is from the topic-Simple Interest and Compound Interest (SI & CI). Simple Interest and Compound Interest (SI & CI) turns out to be an important section in Quantitative Aptitude from which 1-2 questions are asked every year in the CAT Exam.
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/2019.2
Question . 47
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
Explanatory Answer
Method of solving this CAT Quantitative Ability Question from Percentage, Profit & Loss question
Correct Answer: 20920
Let us calculate the interest earned by Amal and Bimal separately.
Interest earned by Amal:
Amount invested by Amal at 8% interest = Rs 12000
Amount invested by Amal at 6% interest compounded semi-annually = Rs 10000
Interest earned on the first investment = P(1 + R/100)ᵀ - P
Where P is the principal amount, R is the rate of interest and T is the time period.
Interest earned on the first investment = 12000(1 + 8/100)¹ - 12000 = Rs 960
Interest earned on the second investment = P(1 + R/2/100)²T - P
Interest earned on the second investment = 10000(1 + 6/2/100)² - 10000 = Rs 615.51
Total interest earned by Amal = Rs 960 + Rs 615.51 = Rs 1575.51
Interest earned by Bimal:
Amount invested by Bimal = Let it be X
Rate of interest = 7.5%
Time period = 1 year
Interest earned by Bimal = PRT/100
Interest earned by Bimal = X × 7.5 × 1/100 = 0.075X
We know that Amal and Bimal get the same amount of interest. Therefore,
0.075X = 1575.51
X = 1575.51/0.075
X = 21006.80
Therefore, the amount invested by Bimal is Rs 21006.80, which when rounded off to the nearest rupee is Rs 20920
Hey!
Worried about IIM calls due to your marks in 10th,12th, and Graduation?
Don't worry! Know your chances of getting an IIM Call based on your profile with our:-
Profile Professor: https://fundamakers.com/profile-professor/
5 Must- NOT-Dos during CAT Preparation.
- Do not treat CAT as 'Everything'.
- Do not quit your job for CAT exam preparation.
- Learning till The Eleventh hour instead of doing proper revision.
- Not checking the syllabus thoroughly.
- Piling up multiple books.
Click To Read:- Common mistakes made by CAT aspirants during preparation.
FundaMakers- Best Online and Offline CAT Online Preparation Institute in India
For any CAT Preparation related query, reach out to us at 9598333344.