Question 59

Anil invests Rs 22000 for 6 years in a scheme with 4% interest per annum, compounded half-yearly. Separately, Sunil invests a certain amount in the same scheme for 5 years, and then reinvests the entire amount he receives at the end of 5 years, for one year at 10% simple interest. If the amounts received by both at the end of 6 years are equal, then the initial investment, in rupees, made by Sunil is

Solution

Let's take the amount invested by Sunil to be X.Ā 

The amount received by Anil at the end of 6 years would beĀ $$22000\left(1+\frac{4}{2\times\ 100}\right)^{6\times\ 2}=22000\left(1.02\right)^{12}$$

The amount received by Sunil at the end of 5 years would beĀ $$X\left(1.02\right)^{10}$$
In the 6th year, Sunil invests this at a simple interest of 10%, giving him an interest ofĀ $$X\left(1.02\right)^{10}\times\ 0.1$$
Giving the total amount with him at the end of 6 years to beĀ $$X\left(1.02\right)^{10}\times\ \left(1+0.1\right)$$

Equating the final amount with Sunil and Anil, we get:
$$X\left(1.02\right)^{10}\times\ \left(1.1\right)=22000\left(1.02\right)^{12}$$
$$X=\frac{22000\left(1.02\right)^2}{1.1}=20808$$

Therefore, OptionĀ D is the correct answer.Ā 


Create a FREE account and get:

  • All Quant CAT complete Formulas and shortcuts PDF
  • 38+ CAT previous year papers with video solutions PDF
  • 5000+ Topic-wise Previous year CAT Solved Questions for Free

cracku

Boost your Prep!

Download App