 # Veeru invested Rs 10000 at 5% simple annual interest... | Quantitative Aptitude - Interest

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The question below is from previous year CAT question from CAT 2020 exam comes from CAT Interest: Veeru invested Rs 10000 at 5% simple annual interest, and exactly after two years, Joy invested Rs 8000 at 10% simple annual interest. How many years after Veeru’s investment, will their balances, i.e., principal plus accumulated interest, be equal?

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## CAT 2020 - Slot 1 - Quantitative Aptitude - Question 3 - Veeru invested Rs 10000 at 5% simple annual interest

Q. 3: Veeru invested Rs 10000 at 5% simple annual interest, and exactly after two years, Joy invested Rs 8000 at 10% simple annual interest. How many years after Veeru’s investment, will their balances, i.e., principal plus accumulated interest, be equal?

Let assume its equal after N years

Veeru’s investment after N years = 10000 + 10000 × 5/100 × N

Joy’s investment after N years = 8000 + 8000 × 10/100 × (N – 2)

Equating both

10000 + 10000 × 5/100 × N = 8000 + 8000 × 10/100 ×(N – 2)

10000 + 500N = 8000 + 800N – 1600

3600 = 300N

N = 12

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