CAT 2024 - Slot 3 Quant Question 9
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CAT 2024 Slot 3 - Quant
Let us assume the amount invested to be P, and the rate of interest to be r.
Value of the investment after 3 years will be, P (1 + r)3
Value of the investment after 5 years will be, P (1 + r)5
(1 + r)2 = 36/25
(1 + r)2 = 1.44
r = 0.2
We need to find the value of n for which 4000 (1 + r)n > 20000
(1 + r)n > 5
(1.2)n > 5
We see that,
1.28 = 4.2999
1.29 = 5.15
Hence it takes 9 years to grow to over 20,000.