CMAT Exam 2023 Shift 2 Solved Paper

Question : 6 of 100

Marks: +1, -0

A certain sum of money earns a simple interest of ₹ 800 over 2 -year period. The same sum of money invested at the same rate of interest and same period on a compound interest basis earns an interest of ₹ 900 . What is the sum?

$₹ 1,200$
₹ 1,600
₹ 2,000
₹ 2,400

Validate

Solution:

Let the amount invested be 'P' and the rate of interest be '

r

'.
Simple interest

=\;{P × r × 2}/{100}

, which is equal to 800

⇒ \;{{\Pr}}/{100}=400

Compound interest

=P (1+\;{r}/{100}) ^2-P=900

\;P (\;{r}/{100}) ^2+\;{2 {\Pr}}/{100}=900

\;P (\;{r}/{100}) ^2=100

\;400 (\;{r}/{100}) =100

\;r=25 \%

\;P=\;{400(100)}/{25}={\Rs} 1600

The answer is option B.

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