GRE Questions

Q:

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

 A) Rs.325 B) Rs.545 C) Rs.560 D) Rs.550

Explanation:

Let each instalment be Rs.x .

1st year =  [x + (x * 12 * 2)/100]

2nd year = [ x + (x *12 * 1)/100]

3rd year = x

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

$\inline \Leftrightarrow$3x + ( 24x/100 ) + ( 12x/100 )  = 1092

$\inline \Leftrightarrow$ 336x =109200

$\inline \therefore$ x = 325

Each instalment = Rs. 325

23 7903
Q:

Jo's collection contains US, Indian and British stamps. If the ratio of US to Indian stamps is 5 to 2 and the ratio of Indian to British stamps is 5 to 1, what is the ratio of US to British stamps?

 A) 10 : 5 B) 15 : 2 C) 20 : 2 D) 25 : 2

Explanation:

Indian stamps are common to both ratios. Multiply both ratios by factors such that the Indian stamps are represented by the same number.

US : Indian = 5 : 2, and Indian : British = 5 : 1. Multiply the first by 5, and the second by 2.

Now US : Indian = 25 : 10, and Indian : British = 10 : 2

Hence the two ratios can be combined and US : British = 25 : 2

140 7451
Q:

In how many years will a sum of Rs.800 at 10% per annum compounded semi annually become Rs.926.10

 A) 1.5 B) 2.5 C) 3.5 D) 4.5

Explanation:

Let the time be 'n' years, Then

$\inline \fn_cm 800\times (1+\frac{5}{100})^2n=926.10\Leftrightarrow (1+\frac{5}{100})^{2n}=\frac{9261}{8000}\Leftrightarrow \left ( \frac{21}{20} \right )^{2n}=(\frac{21}{10})^3$

$\inline \fn_cm \therefore n=\frac{3}{2} \; or \; n=1\frac{1}{2}$ Years

25 6371
Q:

At what rate percent per annum will a sum of money double in 8 years.

 A) 12.5% B) 13.5% C) 11.5% D) 14.5%

Explanation:

Let principal = P, Then, S.I.=P and Time=8 years

Rate = [(100 x P)/ (P x 8)]% = 12.5% per annum.

10 5373
Q:

A certain sum of money amounts to Rs 1008 in 2 years and to Rs 1164 in 3 ½  years. Find the sum and the rate of interest.

 A) 800, 14% B) 800, 13% C) 800, 12% D) 800, 19%

Explanation:

S.I. for 1 ½ years = Rs (1164 - 1008) = Rs 156 .

S.I. for 2 years = Rs (156 x $\inline \frac{2}{3}$ x 2)= Rs 208.

$\inline \therefore$Principal = Rs (1008 - 208) = Rs 800.

Now, P = 800, T= 2 and S.I. = 208.

$\inline \therefore$Rate = (100 x S.I.) / (P x T) = [ (100 x 208)/(800 x 2)]% = 13%