CAT 2024 Slot 2 QA Question 4: Anil invests Rs 22000 for 6 years in a scheme with 4% interest per annum, compounded half-yearly. Separately, Sunil invests a certain amount in the same scheme for 5 years, and then reinvests the enti

Question

Anil invests Rs 22000 for 6 years in a scheme with 4% interest per annum, compounded half-yearly. Separately, Sunil invests a certain amount in the same scheme for 5 years, and then reinvests the enti

Accepted Answer

At $4\%$ per annum compounded half-yearly, the half-yearly rate is $2\%$.
Amount received by Anil after $6$ years:
$22000(1.02)^{12}$
Let Sunil’s initial investment be $x$. After $5$ years, he has $x(1.02)^{10}$. This is then invested for one year at $10\%$ simple interest.
$x(1.02)^{10}(1.10) = 220