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Alex invested his savings in two parts. The simple interest earned on the first part at 15% per annum for 4 years is the same as the simple interest earned on the second part at 12% per annum for 3 years. Then, the percentage of his savings invested in the first part is

CAT · 2022 · Quant Slot 1
Question:
Alex invested his savings in two parts. The simple interest earned on the first part at 15% per annum for 4 years is the same as the simple interest earned on the second part at 12% per annum for 3 years. Then, the percentage of his savings invested in the first part is

Options

62.5%
37.5%
60%
40%
Answer: 37.5%

Explanation:
Let the total savings be P. Let the first part = xP and the second part = (1 - x)P. Simple interest on the first part = xP × (15/100) × 4 = 0.6xP Simple interest on the second part = (1 - x)P × (12/100) × 3 = 0.36(1 - x)P Given that both interests are equal: 0.6xP = 0.36(1 - x)P Simplify: 0.6x = 0.36 - 0.36x 0.96x = 0.36 x = 0.36 / 0.96 = 3/8 Percentage of savings invested in the first part = (3/8) × 100 = 37.5% Final Answer: 37.5%

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