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CAT 2019 Slot 2 — QA Question 32

Simple and Compound InterestEasy

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

Answer & solution

Answer: 20920

Solution

The amount on the first investment of Anmol = 12,000 × (1.08) = 12,960

So the Interest on this investment is 12,960 - 12,000 = 960.

The amount on the second investment of Anmol = 10,000 × (1.03)2 = 10,609

So the Interest on this investment is 10,609 - 10,000 = 609.

So the total interest on these returns = 960 + 609 = 1,569.

Bimal has to get this as Simple Interest by investing X rupees at 7.5%

That means, X × 0.075 = 1,569

X = 20,920

So, Bimal has to invest 20,920 rupees.

Hence, 20920.

CAT 2019 Slot 2 QA Q32: Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annual — Solution | TheCATExam