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GATE 2016 CE (CE2) – Question 6

General Aptitude · Quantitative Aptitude: Arithmetic and Number Computation · 2 marks · Multiple choice

Two finance companies, P and Q, declared fixed annual rates of interest on the amounts invested with them. The rates of interest offered by these companies may differ from year to year. Year-wise annual rates of interest offered by these companies are shown by the line graph provided below. If the amounts invested in the companies, P and Q, in 2006 are in the ratio 8:9, then the amounts received after one year as interests from companies P and Q would be in the ratio:

Diagram for GATE 2016 CE (CE2) question 6
  1. 2:3
  2. 3:4
  3. 6:7
  4. 4:3

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Show answer and explanation

Correct answer: (D) 4:3

Explanation

Read the2006 rates from the graph: P offers6% and Q4%. With principal amounts in ratio8:9, one-year interests are proportional to8·6 and9·4. Their ratio48:36 simplifies to **4:3, D**. Rates from earlier years do not enter this one-year comparison.