CAT 1995 | Question: 86

Question

A man invests Rs. $3000$ at a rate of $5$% per annum. How much more should he invest at a rate of $8$%, so that he can earn a total of 6% per annum?

• A. Rs. 1200
• B. Rs. 1300
• C. Rs. 1500
• D. Rs. 2000

Answer 1

Interest on Rs 3000 at 5 % p.a. = (3000 * 5 * 1) / 100 = Rs 150.

Let his additional investment at 8 % = x

Interest on Rs x at 8 % p.a. = (x * 8 * 1) / 100 = 2x / 25

To earn 6 % p.a. for the total , Interest = ( (3000+x) * 6 * 1 ) / 100

150 + (2x / 25) = ( (3000+x) * 6 * 1 ) / 100

15000 + 8x = (3000+x) * 6

 x = Rs 1500

Option C is the Correct Answer.