CAT 1991 — QA Question 5
Read the following information and answer the questions that follows:
Ghosh Babu deposited a certain sum of money in a bank in 1986. The bank calculated interest on the principal at 10 percent simple interest, and credited it to the account once a year. After the 1st year, Ghosh Babu withdrew the entire interest and 20% of the initial amount. After the 2nd year, he withdrew the interest and 50% of the remaining amount. After the 3rd year, he withdrew the interest and 50% of the remaining amount. Finally after the 4th year, Ghosh Babu closed the account and collected the entire balance of Rs. 11,000.
The total interest, in rupees, collected by Ghosh Babu was:
Answer & solution
12,000
- B
20,000
- C
4,000
- D
11,000
Consider the solution for first question of this set.
As seen from the table, the total interest collected by Ghosh Babu is Rs.24 on Rs.100.
Hence on Rs.50000, it would be 24/100 × Rs. 50,000 = Rs. 12,000
Hence, option (a).