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Simple Interest on a certain sum at the rate of 10% per annum for 6 years and 7 years differs by rs.650/- what is the sum?

A.

Rs 6700

B.

Rs 7000

C.

Rs 6500

D.

Rs 8000

Answer with explanation

Answer: Option CExplanation

Simple interest for one year = 650

PRT/100 = 650

P * 10 * 1/100 = 650

P = 6500

The sum is Rs.6500

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In 10 years, A wants simple interest to be of the amount. So, what should be the rate percent per annum?

A.

5.66%

B.

5%

C.

4%

D.

6%

Answer with explanation

Answer: Option CExplanation

Let sum = x. Then, S.I. = 2x

5 , Time = 10 years.

Rate = (100 * 2x/x * 5 * 10)% = 4%

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The simple interest on a sum of money is 4/9 of the principal. Find the rate percent and time, if both are numerically equal.

A.

6(2/3) years 8 months

B.

4(4/3) years 7 months

C.

7(2/3) years 6 months

D.

None of these

Answer with explanation

Answer: Option AExplanation

Let the sum be Rs P.

Then SI = (4/9) P. Also given R=T.

Since SI = PTR/100 ==>> we find that 4/9P = P x R x R /100

=> R^2 = 100 x 4/9

=> R = 20/3 = 6( 2/3)

Hence the rate = 6 (2/3) % and

time = 6( 2/3) years 8 months.

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A sum at simple interest of 13(1/2)% per annum amounts to Rs. 3080 in 4 years. Find the sum.

A.

Rs. 1550

B.

Rs. 1680

C.

Rs. 2000

D.

Rs. 1850

Answer with explanation

Answer: Option CExplanation

Given:

Amount – Rs. 3080; R = 27/2 %; N = 4 yrs

Let the sum be x.

SI = Amount – Principal

SI = 3080 – x

WKT, SI = PNR/100

3080 – x = (x * 27 * 4)/(100*2)

3080 – x = 27x/50

154000 – 50x = 27x

154000 = 27x + 50x

154000 = 77x

x = 154000/77

x = Rs. 2000

Therefore, sum is Rs. 2000.

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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 6(1/4)% p.a for 2 years. Find his gain in the transaction per year.

A.

Rs. 112.50

B.

Rs. 125

C.

Rs. 225

D.

Rs. 167.50

Answer with explanation

Answer: Option AExplanation

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A certain sum of money amounts to Rs.1008 in 2 years and to Rs.1164 in 3.5 years.find the sum and rate of interest.

A.

12%

B.

13%

C.

15%

D.

20%

Answer with explanation

Answer: Option BExplanation

in 3.5 yrs the amount 1164

in 2 yrs the amount 1008 –

___________________________

the 1.5 yrs interest is 156

the 1 yr interest is 156/1.5 =104

the 2 yrs interest is 208 rs

principal=1008-208= 800

rate of interest=(104/800)*100

=13%

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Ramya gives 50 times the rent per annum to purchase a plot from L.I.C. Find the rate of interest from the amount paid by him.

A.

1%

B.

2%

C.

3%

D.

1.5%

Answer with explanation

Answer: Option BExplanation

Let the annual rent be Rs. x. I = x; P = 50x, n = 1

The rate of interest =100I/Pn =100x/(50x x 1)%= 2%

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4000 was divided into two parts such a way that when first part was invested at 3% and the second at 5%, the whole annual interest from both the investments is Rs.144, how much was put at 3%?

A.

Rs.2500

B.

Rs.5000

C.

Rs.2700

D.

Rs.2800

Answer with explanation

Answer: Option DExplanation

(x*3*1)/100 + [(4000 – x)*5*1]/100 = 144

3x/100 + 200 – 5x/100 = 144

2x/100 = 56 è x = 2800

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What annual installment will discharge a debt of Rs 1092 due in 3 years at 12% simple interest?

A.

325

B.

545

C.

560

D.

550

Answer with explanation

Answer: Option AExplanation

Let each instalment be Rs.x .

Then, `[x + (x ** 12 ** 1)/100] + [ x + (x **12 ** 2)/100] + x =1092`

`( (28x)/25 ) + ( (31x)/25 ) + x = 1092`

`(28x + 31x + 25x) = (1092 ** 25)`

`x = (1092 ** 25)/84= 325`

Each instalment = Rs. 325

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What will the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years.

A.

1 : 2

B.

2 : 1

C.

2 : 2

D.

2 : 3

Answer with explanation

Answer: Option DExplanation

We know that,

SI = Pnr/100

Let the principal be P and rate of interest be R

SI = [P*6*R/100] / [P*9*R/100]

SI = 6/9 = 2/3

SI = 2 : 3

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A.

30.6%

B.

20.6%

C.

5.6%

D.

none of these

Answer with explanation

Answer: Option DExplanation

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What principal will amount to Rs? 16000 in 6 years at 10% simple interest?

A.

B.

C.

D.

Answer with explanation

Answer: Option AExplanation

Let the principal be Rs. p,

Rate of interest is 10% and

time = 6 years.

Amount received at the end of 6 years = 16000 Rs.

**Amount = Principal + S.I
= p + (p * n * r)/100**

—> 16000 = p + (p x 10 x 6) / 100

—> 16000 = p + (6p/10)

—> 16000 = 16p/10

—> p = 16000 x (10/16)

—> p = 1000 x 10

—> p = 10,000 Rs.

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A certain amount becomes Rs 3000 at a simple interest of 12%. Keeping the time period same, if the rate of simple interest is increased by 3%, the amount will become 300 Rs/- more than in the previous setting. What is the amount? Also find the time period.

A.

Rs. 1500 and 7 years

B.

Rs. 1800 and 5.5 years

C.

Rs. 1900 and 8.25 years

D.

Rs. 2000 and 20 years

Answer with explanation

Answer: Option BExplanation

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A sum of money at a certain rate per annum of simple interest doubles in the 5 yr and at a different rate becomes three times in 12 yr. The lower rate of interest per annum is

A.

15%

B.

20%

C.

D.

Answer with explanation

Answer: Option DExplanation

The sum gets doubled in 5 yr and triplled in 12 yr.

So from the given data, its clear that rate of interest for 12 yr is lower.

Let principal be x.

WKT, SI = PNR/100, SI = 2x

R = (SI*100)/PN

= (2x * 100)/(x * 12)

= 50/3 = 16(2/3)%

Therefore, lower rate of interest per annum is 16(2/3)%.

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A.

Rs 6500

B.

Rs 6400

C.

Rs 7200

D.

Rs 7500

Answer with explanation

Answer: Option BExplanation

Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs. (13900 ⎯ x)

Then, [x × 14 × 2 / 100 ] + [(13,900 – x) × 11 × 2 / 100] = Rs.3508

28x ⎯ 22x = 350800 ⎯ (13900 × 22 )

6x = 45000

x = 7500

So, sum invested in Scheme B = Rs. (13900 ⎯ 7500) = Rs.6400

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A lent Rs. 5000 to B for 2 years and Rs 3000 to C for 4 years on simple interest at the same rate of interest and received Rs 2200 in all from both of them as interest. The rate of interest per annum is

A.

9%

B.

11%

C.

15%

D.

10%

Answer with explanation

Answer: Option DExplanation

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If the amount is 2.25 times of the sum after 2 years at compound interest (compound annually) , the rate of interest per annum is :

A.

25%

B.

30%

C.

40%

D.

50%

Answer with explanation

Answer: Option DExplanation

Using the formula we have derived in the article for this exercise:

**If a certain sum becomes x times of itself in t years, the rate of compound interest will be equal to**

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A certain sum becomes Rs. 20720 in four years and 24080 in six years at simple interest. Find sum and rate of interest?

A.

Rs.14000;12%p.a.

B.

Rs.12000;12%p.a.

C.

12000; 15% p.a.

D.

Rs.14000;15% p.a.

Answer with explanation

Answer: Option AExplanation

Let the interest for one year be x.

As amount = Principal + Interest, we have

P + 4x = 20720 — (1) ; P + 6x = 24080 — (2)

Solving the equations (1) and (2), we can get

P = Rs. 14000

and x = Rs. 1680

Interest for one year on Rs. 14000 is Rs. 1680

So, R = (100 * 1680)/(14000 * 1) = 12% p.a.

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Rs.1500 is divided into two parts such that if one part is invested at 6% and the other at 5% the whole annual interest from both the sum is Rs.85. How much was lent at 5%?

A.

Rs 550

B.

Rs 600

C.

Rs 500

D.

Rs 450

Answer with explanation

Answer: Option CExplanation

(x*5*1)/100 + [(1500 – x)*6*1]/100 = 85

5x/100 + 90 – 6x/100 = 85

x/100 = 5=> x = 500

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Raymond bought a car for $40, 000. He took a $20,000 loan from a bank at an interest rate of 15% per year for a 3-year period. What is the total amount (interest and loan) that he would have to pay the bank at the end of 3 years?

A.

$27,800

B.

$27,856

C.

$27563

D.

$25896

Answer with explanation

Answer: Option AExplanation

Simple Interest = 20,000 × 13% × 3 = 7,800

At the end of 3 years, he would have to pay

$20,000 + $7,800 = $27,800

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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 6% p.a for 2 years. Find his gain in the transaction per year.

A.

Rs. 112.50

B.

Rs 100

C.

Rs 120.6

D.

Rs 160

Answer with explanation

Answer: Option AExplanation

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A certain amount becomes Rs. 5760 in 2 years and Rs. 6912 in 3 years. What is the principal amount and the rate of interest?

A.

Rs 3999

B.

Rs 4000

C.

Rs 4012

D.

Rs 4123

Answer with explanation

Answer: Option BExplanation

SI on Rs. 5760 for 1 year = 6912 – 5760 = Rs. 1152

Therefore, Rate of interest for 1 year = 100*1152/5760*1 = 20%

Let the principal be p.

Then, Principal = p[1+ 20/100]^{2 }= 5760

Solving which gives Principal = Rs. 4000

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A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?

A.

Rs. 35

B.

Rs. 245

C.

Rs. 350

D.

Cannot be determined

Answer with explanation

Answer: Option DExplanation

We need to know the S.I, principal and time to find the rate. Since the principal is not given, so data is inadequate.

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Rs.1000 is invested at 5 % p.a simple interest if the interest is added to the principle after every 10 years. The amount will become Rs. 2000 After

A.

15 years

B.

16( 2/3) years

C.

18 years

D.

20 Years

Answer with explanation

Answer: Option BExplanation

S. I for 10 Years = Rs (1000 × 5/100 × 10) = Rs 500

Principle after 10 Years becomes = Rs (1000 + 500)= Rs 1500

S. I on it = Rs (2000 – 1500) = Rs 500

Time = (50000/7500) Years = 6 (2/3) Years

Total Time = (10 + 6 2/3) Years = 16( 2/3) Years

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Rs.2000 amount to Rs. 2600 in 5 years at simple interest if the interest rate were increased by 3 %. It would amount to how much?

A.

Rs.2900

B.

Rs.3200

C.

Rs.3600

D.

None of these

Answer with explanation

Answer: Option AExplanation

Rate` = (600/2000 xx 100/5)` `= 6%

New rate = 9%` `

S.I = ((2000 xx 9 xx 5)/100)` `= 900`

Amount = Rs. (200 + 900) = 2900.

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