CA Foundation · Quantitative Aptitude · Mathematics of Finance
Ms. Kavita divides ₹11,000 into two parts. She lends the first part at 5% per annum simple interest for 2 years and the second part at 4% per annum simple interest for 3 years. The interest earned on both parts is the same. What is the first part?
The first part is ₹6,000. Setting the first part's interest, 0.10x, equal to the second part's interest, 0.12(11,000 − x), gives x = ₹6,000. Each part then earns ₹600, and the second part is ₹5,000.
- A₹5,000
- B₹5,500
- C₹6,000Correct
- D₹6,500
Explanation
Let the first part be x. Interest on the first part = x × 0.05 × 2 = 0.10x. Interest on the second part = (11,000 − x) × 0.04 × 3 = 0.12(11,000 − x). Equating: 0.22x = 1,320, so x = ₹6,000. Check: 6,000 × 0.10 = 600 and 5,000 × 0.12 = 600. The option ₹5,000 is the second part, not the first.
Did you get it right without looking?
One question tells you little. A timed set on Mathematics of Finance shows your real accuracy, how long you take and where you lose marks.
More Mathematics of Finance questions
- A perpetuity pays ₹5,000 at the end of every year, with the first payment at the end of year 4 (no payments before that). At 10% per annum, …
- A sum of money amounts to ₹13,600 in 4 years and to ₹15,400 in 6 years at the same rate of simple interest. What is the rate of interest per…
- Mr. Iyer wants a scheme that pays Rs 6,000 at the end of every year forever, with the first payment one year from today. If the rate of inte…
- Rajesh invests ₹50,000 in a fixed deposit that offers 8% per annum simple interest. How much interest will he earn after 3 years?
- Ananya deposits ₹10,000 at the end of every year for 3 years in an account paying 10% per annum compounded annually. What will be the accumu…
- A sum is invested at 8% per annum compounded quarterly. Which expression gives the effective annual rate of interest?