Interest Question Answers

Interest - Quant/Math - CAT 2008

Question 4 the day:

November 13, 2003

The question for the day is from the topic of Interest.

Rs. 5887 is divided between Shyam and Ram, such that Shyam's share at the end of 9 years is equal to Ram's share at the end of 11 years, compounded annually at the rate of 5%. Find the share of Shyam.

(1)	2088			(2)	2000
(3)	3087			(4)	None of these

Correct Answer - (3)

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Solution:


Shyam's share * (1+0.05)⁹ = Ram's share * (1 + 0.05)¹¹

Shyam's share / Ram's share = (1 + 0.05)¹¹ / (1+ 0.05)⁹ = (1+ 0.05)² = 441/400

Therefore Shyam's share = (441/841) * 5887 = 3087.