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Q:

A man buys a watch for Rs1950 in cash and sells it for Rs 2200 at a credit of 1 yr. The rate of interest is 10% per annum. Then he gains or loose how much amount?

A) 50	B) 55
C) 15	D) 45

Answer & Explanation Answer: A) 50

Explanation:

S.P = P.W of Rs. 2200 due 1yr hence = Rs. [(2200 x 100)/100+(10 x 1)] = Rs.2000

Gain = Rs.(2000-1950) = Rs. 50

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Filed Under: True Discount

Q:

What will be compounded amount?
I. Rs. 200 was borrowed for 192 months at 6% compounded annually.
II. Rs. 200 was borrowed for 16 years at 6%.

A) I alone sufficient while II alone not sufficient to answer	B) II alone sufficient while I alone not sufficient to answer
C) Either I or II alone sufficient to answer	D) Both I and II are not sufficient to answer

Answer & Explanation Answer: C) Either I or II alone sufficient to answer

Explanation:

I. Amount = $R s . [200 * {(1 + \frac{6}{100})}^{16}]$

II. Amount = $R s [200 * {(1 + \frac{6}{100})}^{16}]$

Thus, I as well as II gives the answer.

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

The difference between compound interest and simple interest on a sum for two years at 8% per annum, where the interest is compounded annually is Rs.16. if the interest were compounded half yearly , the difference in two interests would be nearly

A) Rs.24.64	B) Rs.21.85
C) Rs.16	D) Rs.16.80

Answer & Explanation Answer: A) Rs.24.64

Explanation:

For 1st year S.I =C.I.

Thus, Rs.16 is the S.I. on S.I. for 1 year, which at 8% is thus Rs.200

i.e S.I on the principal for 1 year is Rs.200

Principle = $R s . \frac{100 * 200}{8 * 1}$ = Rs.2500

Amount for 2 years, compounded half-yearly

$R s . [2500 * {(1 + \frac{4}{100})}^{4}] = R s . 2924.4$

C.I = Rs.424.64

Also, $S . I = R s . (\frac{2500 * 8 * 2}{100}) = R s . 400$

Hence, [(C.I) - (S.I)] = Rs. (424.64 - 400) = Rs.24.64

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

The difference between the simple interest on a certain sum at the rate of 10%per annum for 2 years and compound interest which is compounded every 6 months is Rs.124.05. what is the principal sum

A) Rs.6000	B) Rs.8000
C) Rs.12000	D) none of these

Answer & Explanation Answer: B) Rs.8000

Explanation:

Compound Interest on P at 10% for 2 years when interest is compounded half-yearly

= $P {(1 + \frac{\frac{R}{2}}{100})}^{2 T} - P = P {(1 + \frac{1}{20})}^{4} - P = P {(\frac{21}{20})}^{4} - P$

Simple Interest on P at 10% for 2 years = $\frac{P R T}{100} = \frac{P \times 10 \times 2}{100} = \frac{P}{5}$

Given that difference between compound interest and simple interest = 124.05

$P * {(\frac{21}{20})}^{4} - P - \frac{P}{5} = 124.05$

=> $P [{(\frac{21}{20})}^{4} - 1 - \frac{1}{5}] = 124.05$

P=8000

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

A trader owes a maerchant Rs10028 due 1yr hence The trader wants to settle the account after 3 months .If the rate of interest is 12%per annum How much cash should he pay?

A) Rs.9000	B) Rs.9002
C) Rs.9200	D) Rs.9120

Answer & Explanation Answer: C) Rs.9200

Explanation:

Required Money = P.W of Rs. 10028 due 9 months hence

= Rs.[10028 x 100] / [100+(12 x 9/12)] =Rs.9200

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Filed Under: True Discount

Q:

The difference between simple and compound interest compounded annually on a certain sum of money for 2 years at 4% per annum is re.1. the sum is

A) 625	B) 630
C) 640	D) 650

Answer & Explanation Answer: A) 625

Explanation:

sum=Rs.x

C.I=[x(1+4/100)^2-x]=(676/625x-x)=51/625

S.I=(x*4*2)/100=2x/25

x=625

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

The difference between the compound interest and simple interest on an amount of Rs.15000 for two years is Rs.96. what is the rate of interest per annum

A) 8	B) 10
C) 12	D) 13

Answer & Explanation Answer: A) 8

Explanation:

[15000 *(1+r/100)^2-15000]-(15000*r*2)/100=96

r=8

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

The banker's discount on Rs. 1800 at 12% per annum is equal to the true discount on Rs. 1872 for the same time at the same rate. Find the time.

A) 7 months	B) 6 months
C) 3 months	D) 4 months

Answer & Explanation Answer: D) 4 months

Explanation:

S.I. on Rs. 1800 = T.D. on Rs. 1872.

P.W. of Rs. 1872 is Rs. 1800.

Rs. 72 is S.I. on Rs. 1800 at 12%.

Time =[(100 x 72)/ (12x1800)]year

=1/3year = 4 months.

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Filed Under: Banker's Discount

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