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If the difference between CI and SI on a certain sum of money at 5% per annum for 2 years is Rs.15, Find the sum.

A.

Rs.4500

B.

Rs.5000

C.

Rs.5550

D.

Rs.6000

Answer with explanation

Answer: Option DExplanation

We know, SI = P*R*T/100

And, CI = P(1 + R/100)^{T} – P

If T = 2years,

CI – SI = P(1 + R/100)^{2} – P – 2*P*R/100

= P{1^{2} + (R/100)^{2} + 2*1*(R/100)} – P – 2*P*R/100

= P + P(R/100)^{2} + 2*P*(R/100) – P – 2*P*R/100

=> **CI – SI = P(R/100) ^{2} [For T = 2 years]**

∴ 15 = P (5/100)^{ 2}

15 = P (1/20)^{ 2}

15 * 400 = P

=> **P = Rs.6000**

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Rosy lent out a certain sum. She lent 1/3^{rd} part of it at 7% SI, 1/4^{th} part at 8% SI and remaining part at 10% SI. If Rs.510 is her total interest after one year, find the total money lent out.

A.

Rs.6000

B.

Rs.5100

C.

Rs. 5000

D.

Rs.4500

Answer with explanation

Answer: Option AExplanation

We know, SI = (P * R * T) / 100

Here, we have different Principals and different rate of interests

Also, The remaining part = 1 – 1/3 – 1/4 = 5/12

∴ SI = {P * (x_{1} * R_{1} + x_{2} * R_{2} + x_{3} * R_{3}) * T} / 100

510 = {P * (1/3 * 7 + 1/4 * 8 + 5/12 * 10) * 1} / 100

51000 = P * (7/3 + 8/4 + 50/12)

P = 51000 / (51/6)

=> P = Rs.6000

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An automobile 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:

A.

10.25%

B.

10.5%

C.

10%

D.

None of these

Answer with explanation

Answer: Option AExplanation

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The difference between simple and compound interest for the fourth year is Rs. 7280 at 20% p.a. What is the principal sum?

A.

70000

B.

50000

C.

40000

D.

10000

Answer with explanation

Answer: Option BExplanation

Difference between Ci and SI for n^{th} year,

= (Pr /100) *[(1 +(r /100))^{n-1} -1]

→ 7280 = (20P/100) *[(1.2)^{3}-1]

→ P = 50000.

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What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum

A.

140

B.

130

C.

120

D.

110

Answer with explanation

Answer: Option CExplanation

Let the present worth be Rs.x

Then,S.I.= Rs.(132 – x)

=› (x*5*2/100) = 132 – x

=› 10x = 13200 – 100x

=› 110x = 13200

x= 120

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An amount of Rs. 3000 becomes Rs. 3600 in four years at simple interest. If the rate of interest was 1% more, then what was be the total amount?

A.

Rs. 3720

B.

Rs. 3550

C.

Rs. 3780

D.

Rs. 3800

Answer with explanation

Answer: Option AExplanation

A = P(1 + TR/100)

=> 3600 = 3000[1 + (4 * R)/100] => R = 5%

Now R = 6%

=> A = 3000[1 + (4 * 6)/100] = Rs. 3720.

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How long will it take for a sum of money to grow from Rs.1250 to Rs.10,000, if it is invested at 12.5% p.a simple interest?

A.

56 years

B.

57 years

C.

45years

D.

60 years

Answer with explanation

Answer: Option AExplanation

Simple interest is given by the formula SI = (pnr/100), where p is the principal, n is the number of years for which it is invested, r is the rate of interest per annum

In this case, Rs. 1250 has become Rs.10,000.

Therefore, the interest earned = 10,000 – 1250 = 8750.

8750 = [(1250 x n x 12.5)/100]

=> n = 700 / 12.5 = 56 years.

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A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6p.a for 2 years. Find his gain in the transaction per year.

A.

150

B.

Rs. 112.50

C.

Rs. 167.50

D.

120

Answer with explanation

Answer: Option BExplanation

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Abhay gave Rs 1200 on loan. Some amount he gave at 4% per annum on simple interest and remaining at 5% per annum on simple interest. After 2 years he got Rs 110 as interest. Then the amounts given at 4% and 5% per annum simple interest are respectively.

A.

Rs 400, Rs 800

B.

Rs 800, Rs 300

C.

Rs 500, Rs 700

D.

Rs 1000, Rs 1100

Answer with explanation

Answer: Option CExplanation

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If A lends Rs. 3500 to B at 10% p.a. and B lends the same sum to C at 11.5% p.a., then the gain of B (in Rs.) in a period of 3 years is

A.

Rs. 156.50

B.

Rs. 157.50

C.

Rs. 154.50

D.

Rs. 155.50

Answer with explanation

Answer: Option BExplanation

We need to calculate the profit of B.

It will be,

SI on the rate B lends – SI on the rate B gets

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A sum becomes 4 times at simple interest in 10 years. What is the rate of interest?

A.

20%

B.

10%

C.

40%

D.

30%

Answer with explanation

Answer: Option DExplanation

*1 ^{st} Method:*

Let rate is R%.

Now,

P = 100;

A = 400;

I = 400-100 = 300;

Time, T = 10 years;

I = PTR/100;

Or, R = (100*I)/PT;

Or, R = (100*300)/(100*10);

Hence, R = 30%;

*2 ^{nd} Method:*

Here, the sum becomes 4 times that means 100, become 400;

Rate of such question is given by;

R= interest/time = 300/10 = 30%;

*3 ^{rd} Method:*

Here, 300% of rise in the sum,so

100——300%↑—-400;

R=(total percentage rise/given time) = 300% /10 = 30%.

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Sahil took a loan for 6 years at the rate of 5% per annum on Simple Interest, If the total interest paid was Rs. 1230, the principal was

A.

4400

B.

4200

C.

4100

D.

4300

Answer with explanation

Answer: Option CExplanation

By applying below formula we can easily solve this question, as we are already having the simple interest.

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