Mr. Pinto invests one-fifth of his capital at 6%, one-third at 10% and the remaining at 1%, each rate being simple interest per annum. Then, the minimum number of years required for the cumulative interest income from these investments to equal or exceed his initial capital is
Explanation:
Let the total investment be Rs. 1500.
⇒ Rs. 300 is invested at 6% ⇒ Interest/year = Rs. 18 ⇒ Rs. 500 is invested at 10% ⇒ Interest/year = Rs. 50 ⇒ Rs. 700 is invested at 1% ⇒ Interest/year = Rs. 7
∴ Total interest received/year = 18 + 50 + 7 = Rs. 75
⇒ Time required to receive Rs. 1500 as interest = 150075 = 20 years.
Hence, 20.
» Your doubt will be displayed only after approval.
Help us build a Free and Comprehensive Preparation portal for various competitive exams by providing us your valuable feedback about Apti4All and how it can be improved.