Latest CAT Aptitude Question SOLUTION: Rohit invests Rs.25,000 in an investment at a compound interest of 12% per annum. However, he has to withdraw his investments after 16 months. How much interest did he earn? option

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(#M40029729) CAT question Interests Keep an EYE

Rohit invests Rs.25,000 in an investment at a compound interest of 12% per annum. However, he has to withdraw his investments after 16 months. How much interest did he earn?
option
a) 5121
b) 5187.50
c) 2441.33
d) 4221

Asked In CAT (10 years ago)

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sourav karan  (10 years ago)

let principle amount=25000, he withdrw his investments after 16 months so this interests compounded quarterly.
from the compound interest formula, A=P(1+r/n)^nt.
so,r=.12,n=4,t=16/12=1.33y put those in the formula

A=25000*(1+.03)^4*1.33=29221.28 then interes will be=(29221.28-25000)=4221.28...

this is my answer..

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Devendra Marghade  (10 years ago)

4120
Interest after 12 months=25000*12/100=3000
Interest rate for 4 months @12% per annum=12/3=4%
So Interest of 4 months=(25000*4/100)+(3000*4/100)=1120
Total interest=3000+1120= 4120

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