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A person invested a certain amount of money - Quantitative Aptitude - Interest

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The question below is from previous year CAT question from CAT 2020 exam comes from CAT Interest: A person invested a certain amount of money

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

You may also find remaining question solution of CAT 2020, Slot 3 by searching the question in the search bar.

CAT 2020 - Slot 3 - Quantitative Aptitude - Interest - Question 20 - A person invested a certain amount of money

Q. 1: 20. A person invested a certain amount of money at 10% annual interest, compounded half-yearly. After one and a half years, the interest and principal together became Rs 18522. The amount, in rupees, that the person had invested is

20. Correct Answer: 16000

A 10% annual interest is a 5% bi-annual interest.

Hence interst for half an year is 5%.

 

The Principal, P is invested for 1.5 years or 3 terms of half years.

Therefore, P (1 + 5%)3 = 18522

P(1.05)3 = 18522

P = 2 × 20 × 20 × 20 = 16000.

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