NIMCET 2025 Reasoning PYQ — A sum of money was divided into 2 parts in the ratio 2:5. First p… | Mathem Solvex | Mathem Solvex
Tip:A–D to answerE for explanationV for videoS to reveal answer
NIMCET 2025 — Reasoning PYQ
NIMCET | Reasoning | 2025
A sum of money was divided into 2 parts in the ratio 2:5. First part was invested for 2 years at the annual interest rate of 20% compounded annually. At what rate of simple interest per annum the second part must be invested for 2 years, so that the interest earned in both cases is the same?
Choose the correct answer:
A.
9.6%
B.
8.8%
(Correct Answer)
C.
Cannot be determined
D.
10.2%
Correct Answer:
8.8%
Explanation
1. Calculate Compound Interest (CI) on the first part:
Principal (P1)=2x
Rate (R1)=20%
Time (T)=2 years
Effective CI Rate=(R+R+100R2)%=(20+20+100400)%=44%
Interest1=44% of 2x=10044×2x=0.88x
2. Calculate Simple Interest (SI) on the second part:
Principal (P2)=5x
Rate (R2)=R (to be found)
Time (T)=2 years
Interest2=100P×R×T=1005x×R×2=0.1xR
3. Equate both interests:
According to the question, Interest1=Interest2:
0.1xR=0.88x
0.1R=0.88
R=0.10.88
R=8.8%
Correct Option: C) 8.8%
Explanation
1. Calculate Compound Interest (CI) on the first part:
Principal (P1)=2x
Rate (R1)=20%
Time (T)=2 years
Effective CI Rate=(R+R+100R2)%=(20+20+100400)%=44%
Interest1=44% of 2x=10044×2x=0.88x
2. Calculate Simple Interest (SI) on the second part: