CAT 2022 Interest Question (Hard)

Question

Mr. Pinto invests one-fifth of his capital at 6 , one-third at 10 and the remaining at 1 , each rate being simple interest per annum. Then, the minimum number of years required for the cumulative interest income from these investments to equal or exceed his initial capital is

Accepted Answer

Step 1 Let Mr. Pinto s total capital be C. His investments - One-fifth at 6 amount 1 5 C - One-third at 10 amount 1 3 C - Remaining C - 1 5 C - 1 3 C C 1 - 1 5 - 1 3 C 7 15 So, investment breakdown - 1 5 C at 6 - 1 3 C at 10 - 7 15 C at 1 Step 2 Simple interest after t years P R t 100 Total interest

CAT 2022

Quantitative

Interest

Hard

Mr. Pinto invests one-fifth of his capital at 6%, one-third at 10% and the remaining at 1%, each rate being simple interest per annum. Then, the minimum number of years required for the cumulative interest income from these investments to equal or exceed his initial capital is

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