CAT 2024 Interest Question (Hard)

Question

Aman invests Rs 4000 in a bank at a certain rate of interest, compounded annually. If the ratio of the value of the investment after 3 years to the value of the investment after 5 years is 25 36, then the minimum number of years required for the value of the investment to exceed Rs 20000 is

Accepted Answer

Step 1 Let the compound interest rate be per annum Then the amount after years is Given So Simplify Take reciprocal So Step 2 Now, we want to find minimum such that investment exceeds Rs. 20000 So Divide both sides by 4000 Try values of So minimum Final Answer The minimum number of years is 9

CAT 2024

Quantitative

Interest

Hard

Aman invests Rs 4000 in a bank at a certain rate of interest, compounded annually. If the ratio of the value of the investment after 3 years to the value of the investment after 5 years is 25 : 36, then the minimum number of years required for the value of the investment to exceed Rs 20000 is

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