CAT 2017 Slot 1 QA Question 5: 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

Question

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

Accepted Answer

Let the balances become equal $t$ years after Veeru’s investment. Then Joy has invested for $t - 2$ years.

Veeru’s balance = $10000 \left(1 + \dfrac{5t}{100} \right)$
Joy’s balance = $8000 \left(1 + \dfrac{10(t - 2)}{100} \right)$

$10000 \left(1 + \dfrac{5t}{100} \right) = 8000 \left(1 + \dfrac{10

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?