CAT 1995 — QA Question 15
Direction: Answer the questions based on the following information.
Four sisters — Suvarna, Tara, Uma and Vibha are playing a game such that the loser doubles the money of each of the other players from her share. They played four games and each sister lost one game in alphabetical order. At the end of fourth game, each sister had Rs.32.
A man invests Rs.3,000 at the rate of 5% per annum. How much more should he invest at the rate of 8%, so that he can earn a total of 6% per annum?
Answer & solution
- A
Rs. 1,200
- B
Rs. 1,300
Rs. 1,500
- D
Rs. 2,000
Using alligation, the ratio of the amounts invested at both the rates = 2 : 1.
Since he has invested Rs.3,000 at 5%, he should further invest Rs.1,500 at 8% to earn a total interest of 6% per annum.
Alternative method:
Let the amount invested at 8% be Rs. x.
Then,
⇒ 0.02x = 30 ⇒ x = 1,500
∴ He should further invest Rs.1,500 at 5% to earn a total interest of 6% per annum.