CAT Question Paper | CAT Verbal Ability Slot
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
Started 6 days ago by Shashank in
Answer : 20
Explanatory Answer
Let the capital invested by Mr.Pinto be ₹300.
₹300 because we deal with one-third, further in the question.
| Investments | Invested amount | Rate of interest | Return |
| one-fifth | 60 | 6% | ₹3.6 |
| one-third | 100 | 10% | ₹10 |
| remaining | 140 | 1% | ₹1.4 |
| Total return in a year | ₹15 | ||
The interest generated is ₹15 per year.
Let’s say the capital is invested for n years.
When return equals capital…
15 n = 300
n = 20.
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