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The question is from CAT Ratio, Mixtures and Averages. When a sum of amount is lend at two different percentages, what is the amount lend at one particular rate? CAT exam is known to test on basics rather than high funda ideas. A range of CAT questions can be asked from Ratios and Proportions, Mixtures, Alligations and Averages. Make sure you master the topics. 2IIMs CAT questions bank provides you with CAT questions that can help you gear for CAT Exam CAT 2019.

Question 29: Ram borrows Rs 4000 on simple interest from Shyam for a period of 4 years. He borrows a portion of amount at 2% interest and the remaining at 5%. If the interest Shyam earns is Rs 480, How much money did Ram borrow at 2% interest rate?

  1. \\frac{8000}{3}\\)
  2. \\frac{4000}{3}\\)
  3. 3000
  4. 2000

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Explanatory Answer

Method of solving this CAT Question from Ratio, Mixtures and Averages: When we mix two mixtures in a particular ratio, we get a third mixture. Given the third mixture how does one find the ratio in which they were mixed.

Interest earned per year = Rs.\\frac{480}{4}\\) = Rs 120
Therefore, % earned per year = \\frac{120}{4000}\\) = 3%
CAT Question - Ratio and Proportion 5
So, amount invested in 2% = \\frac{2}{3}\\) * 4000 = \\frac{8000}{3}\\)

The question is "How much money did Ram borrow t 2% interest rate?"

Hence, the answer is "\\frac{8000}{3}\\)".

Choice A is the correct answer.

 

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