cat 2023 Question 16

Question

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

Accepted Answer

Anil invested 22000 for 6 years at 4% interest compounded half-yearly

=> Amount = 22000 $ (1.02)^{12} $

Let Sunil invest 'S' rupees for 5 years at 4% C.I. half-yearly and 10% S.I. for 1 additional year

=> Amount = $ S (1.02)^{10} (1.1) $

Given that the both amounts are equal

=> $ 22000 (1.02)^{12} = S (1.02)^{10} (1.1) $

=> $ S = \frac{22000 (1.02)^2}{1.1} = 20808 $

Question 16.

Question Explanation