NinetynineCAT 2023 Slot 1 QA Q16 Interest
Question 16 of the Quantitative Ability (QA) section, CAT 2023 Slot 1, with CAT's official answer and a worked solution.
Anil invests Rs. 22000 for 6 years in a certain scheme with 4% interest per annum, compounded half-yearly. Sunil invests in the same scheme for 5 years, and then reinvests the entire amount received 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 same, then the initial investment made by Sunil, in rupees, is
TITA: type in the answer. There are no options and no negative marking.
Answer: 20808 Interest TITA
Solution
- Half-yearly rate is 2%. Anil gets \(22000\times1.02^{12}\).
- Sunil gets \(P\times1.02^{10}\times1.1\).
- Equating: \(P = \frac{22000\times1.02^2}{1.1} = 20000\times1.0404 = 20808\).