CAT 2023 Slot 1 QA Question 15: 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 a

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 a

Accepted Answer

At 4% per annum compounded half-yearly, the half-yearly rate is 2%.

Anil’s amount after 6 years is
$22000(1.02)^{12}$

Let Sunil’s initial investment be P. After 5 years in the same scheme and then 1 year at 10% simple interest, his amount is
$P(1.02)^{10} 	imes 1.1$

The two amounts are equal.
$P