Register

CAT 1995 | Question: 68

• recategorized by
7,364 views
1 1 vote

Ram purchased a flat at Rs. 1 lakh and Prem purchased a plot of land worth Rs. 1.1 lakh. The respective annual rates at which the prices of the flat and the plot increased were 10% and 5%. After two years they exchanged their belongings and one paid the other the difference. Then:

  1. Ram paid Rs. 275 to Prem
  2. Ram paid Rs. 475 to Prem
  3. Ram paid Rs. 2750 to Prem
  4. Prem paid Rs. 475 to Ram

1 Answer

Best answer
1 1 vote

After 2 years the price of the flat will be

  1,00,000 * (1 + 10/100)2 = 1,00,000 * (11/10)2 = 1,21,000              [Calculated in compound interest]

After 2 years the price of the plot of land will be

   1,10,000 * (1 + 5/100)2 = 1,10,000 * (105/100)2 = 121275            [Calculated in compound interest]

So, the plot has higher price than the flat.

Therefore, Ram will pay (121275 - 121000) = 275 rs. to Prem

• selected by
Voting & Accepting an answer helps improve the community
← Previous · CAT 1995 | Question:...Next → · CAT 1995 | Question:...
← Previous in category · CAT 1995 | Question:...Next in category → · CAT 1995 | Question:...
Position:
Show:

Related questions

3 3 votes
1 1 answer
2.9k
2.9k views
Misbah Ghaya asked Oct 4, 2017
2,876 views
CAT 1995 | Question: 185
A company produces five types of shirts - A, B, C, D, E - using cloth of three qualities - High, Medium and Low - using dyes of three qualities - High, Medium, and Low. T...
1 1 vote
1 1 answer
2.6k
2.6k views
Misbah Ghaya asked Oct 4, 2017
2,612 views
CAT 1995 | Question: 184
A company produces five types of shirts - A, B, C, D, E - using cloth of three qualities - High, Medium and Low - using dyes of three qualities - High, Medium, and Low. T...
1 1 vote
2 2 answers
3.5k
3.5k views
Misbah Ghaya asked Oct 4, 2017
3,460 views
CAT 1995 | Question: 183
A company produces five types of shirts - A, B, C, D, E - using cloth of three qualities - High, Medium and Low - using dyes of three qualities - High, Medium, and Low. T...
1 1 vote
1 1 answer
4.4k
4.4k views
Misbah Ghaya asked Oct 4, 2017
4,393 views
CAT 1995 | Question: 182
A company produces five types of shirts - A, B, C, D, E - using cloth of three qualities - High, Medium and Low - using dyes of three qualities - High, Medium, and Low. T...
1 1 vote
1 1 answer
3.6k
3.6k views
Misbah Ghaya asked Oct 4, 2017
3,564 views
CAT 1995 | Question: 181
A company produces five types of shirts - A, B, C, D, E - using cloth of three qualities - High, Medium and Low - using dyes of three qualities - High, Medium, and Low. T...