CAT Exam > CAT Questions > Amal invests Rs 12000 at 8% interest, compoun...
Start Learning for Free
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal is
Correct answer is '20920'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 1000...
The amount with Amal at the end of 1 year = 12000*1.08+10000*1.03*1.03=23569
Interest received by Amal = 23569-22000=1569 Let the amount invested by Bimal = 100b Interest received by Bimal = 100b*7.5*1/100=7.5b
It is given that the amount of interest received by both of them is the same 7.5b=1569 b=209.2
Amount invested by Bimal = 100b = 20920
Interest received by Amal = 23569-22000=1569 Let the amount invested by Bimal = 100b Interest received by Bimal = 100b*7.5*1/100=7.5b
It is given that the amount of interest received by both of them is the same 7.5b=1569 b=209.2
Amount invested by Bimal = 100b = 20920
Most Upvoted Answer
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 1000...
Understanding Amal's Investments
Amal makes two investments:
- Investment 1: Rs 12000 at 8% interest, compounded annually.
- Investment 2: Rs 10000 at 6% interest, compounded semi-annually.
Calculating Amal's Total Interest
1. For the first investment (compounded annually):
- Amount = Principal * (1 + Rate) ^ Time
- Amount = 12000 * (1 + 0.08) ^ 1 = 12000 * 1.08 = Rs 12960
- Interest = Amount - Principal = 12960 - 12000 = Rs 960
2. For the second investment (compounded semi-annually):
- Effective rate = 6% / 2 = 3% per half year
- Amount = Principal * (1 + Rate) ^ (2 * Time)
- Amount = 10000 * (1 + 0.03) ^ 2 = 10000 * 1.0609 = Rs 10609
- Interest = Amount - Principal = 10609 - 10000 = Rs 609
3. Total Interest for Amal:
- Total Interest = Interest from Investment 1 + Interest from Investment 2
- Total Interest = 960 + 609 = Rs 1569
Understanding Bimal's Investment
Bimal invests his money at 7.5% simple interest for one year. The formula for simple interest is:
- Simple Interest = Principal * Rate * Time
Setting Up the Equation
Since Bimal's interest equals Amal's total interest:
- 1569 = Principal * 0.075 * 1
Calculating Bimal's Investment
- Principal = 1569 / 0.075 = Rs 20920
Conclusion
Thus, the amount invested by Bimal is Rs 20920, matching the interest earned by Amal.
Amal makes two investments:
- Investment 1: Rs 12000 at 8% interest, compounded annually.
- Investment 2: Rs 10000 at 6% interest, compounded semi-annually.
Calculating Amal's Total Interest
1. For the first investment (compounded annually):
- Amount = Principal * (1 + Rate) ^ Time
- Amount = 12000 * (1 + 0.08) ^ 1 = 12000 * 1.08 = Rs 12960
- Interest = Amount - Principal = 12960 - 12000 = Rs 960
2. For the second investment (compounded semi-annually):
- Effective rate = 6% / 2 = 3% per half year
- Amount = Principal * (1 + Rate) ^ (2 * Time)
- Amount = 10000 * (1 + 0.03) ^ 2 = 10000 * 1.0609 = Rs 10609
- Interest = Amount - Principal = 10609 - 10000 = Rs 609
3. Total Interest for Amal:
- Total Interest = Interest from Investment 1 + Interest from Investment 2
- Total Interest = 960 + 609 = Rs 1569
Understanding Bimal's Investment
Bimal invests his money at 7.5% simple interest for one year. The formula for simple interest is:
- Simple Interest = Principal * Rate * Time
Setting Up the Equation
Since Bimal's interest equals Amal's total interest:
- 1569 = Principal * 0.075 * 1
Calculating Bimal's Investment
- Principal = 1569 / 0.075 = Rs 20920
Conclusion
Thus, the amount invested by Bimal is Rs 20920, matching the interest earned by Amal.
Free Test
FREE
| Start Free Test |
Community Answer
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 1000...
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
|
Explore Courses for CAT exam
|
|
Similar CAT Doubts
Top Courses for CATView all
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer?
Question Description
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer?.
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer?.
Solutions for Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT.
Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer?, a detailed solution for Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? has been provided alongside types of Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Amal invests Rs 12000 at 8% interest, compounded annually, and Rs 10000 at 6% interest, compounded semi-annually, both investments being for one year. Bimal invests his money at 7.5% simple interest for one year. If Amal and Bimal get the same amount of interest, then the amount, in Rupees, invested by Bimal isCorrect answer is '20920'. Can you explain this answer? tests, examples and also practice CAT tests.
|
|
Explore Courses for CAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup