Ques. A sum of money at simple interest amounts to Rs. 2240 in 2 years and to Rs. 2600 in 5 years. What is the principal amount

1000

1500

2000

2500

Answer And Explanation

Answer: Option C

Explanation:

SI for 3 year = 2600-2240 = 360

SI for 2 year 360/3 * 2 = 240

principal = 2240 – 240 = 2000

Qu.In how many years Rs 150 will produce the same interest at 8% as Rs. 800 produce in 3 years at 9/2%

8

9

10

11

Answer And Explanation

Answer: Option B

Explanation:

Clue:

Firstly we need to calculate the SI with prinical 800,Time 3 years and Rate 9/2%, it will be Rs. 108

Then we can get the Time as

Time = (100*108)/(150*8) = 9

Ques. A financier claims to be lending money at simple interest, But he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes.

10.25%

10%

9.25%

9%

Answer And Explanation

Answer: Option A

Explanation:

Let the sum is 100.

As financier includes interest every six months., then we will calculate SI for 6 months, then again for six months as below:

SI for first Six Months = (100*10*1)/(100*2) = Rs. 5

Important: now sum will become 100+5 = 105

SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25

So amount at the end of year will be (100+5+5.25)

= 110.25

Effective rate = 110.25 – 100 = 10.25

Ques. A sum of money amounts to Rs 9800 after 5 years and Rs 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is

9%

10%

11%

12%

Answer: Option D

Explanation:

We can get SI of 3 years = 12005 – 9800 = 2205

SI for 5 years = (2205/3)*5 = 3675 [so that we can get principal amount after deducting SI]

Principal = 12005 – 3675 = 6125

So Rate = (100*3675)/(6125*5) = 12%

Albert invested amount of 8000 in a fixed deposit for 2 years at compound interest rate of 5 % per annum. How much Albert will get on the maturity of the fixed deposit.

Rs. 8510

Rs. 8620

Rs. 8730

Rs. 8820

Answer And Explanation

Answer: Option D

Explanation:

=>(8000×(1+5100)^2)

=>8000×21/20×21/20

=>8820