CAT 2020 Interest Question (Medium)

Question

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

Accepted Answer

Step 1 Given - Annual interest rate 10 - Compounded half-yearly interest per 6 months 5 - Time 1.5 years 3 half-years - Final amount 18522 - Let principal P Step 2 Compound Interest Formula Amount P 1 r 100 n Here, r 5, n 3 So 18522 P 1.05 3 P 1.157625 Step 3 Solve for P P 18522 1.157625 16000 Final

CAT 2020

Quantitative

Interest

Medium

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

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