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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?

Find out by answering this question which tests an aspirant’s Quantitative Ability Skills:

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?

Correct Answer: 12

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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