CAT Exam Model Paper 2 with solutions for free online practice

Question : 100 of 100

Marks: +1, -0

ICICI lent ₹ 1 lakh to captain Ram Singh at the rate 6% per annual of simple interest for 10 years period. Meanwhile ICICI offered a discount in rate of interest for armed forces. The rate of interest ICICI decreased to 4%. In this way Ram Singh had to pay total amount 1.48 lakh.
After how many year Ram Singh got the discount in rated interest?

3 years
4 years
6 years
5 years

Validate

Solution:

(b) Interest paid by Ram Singh = ₹ 48000
Now, go through option, for 4 years

48000 = { 100000 × [ 6 × 4 + 4 × 6 ] × 10 } /{ 100 }

48000 = 48000

Hence, proved that option (b) is correct. It means Ram Singh availed the discount after 4 years of loaning.

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