A) 247.67 | B) 237.67 |

C) 227.67 | D) 215.67 |

Explanation:

Suppose the merchant will take advantage of the cash discount of 4% of $20 000 = $800 by paying the bill within 30 days from the date of invoice. He needs to borrow $20 000 = $800 = $19 200. He would borrow this money on day 30 and repay it on day 100 (the day the original invoice is due) resulting in a 70-day loan. The interest he should be willing to pay on borrowed money should not exceed the cash discount $800.

r=I/pt=21.73%

The highest simple interest rate at which the merchant can afford to borrow money is 21.73%. This is a break-even rate. If he can borrow money, say at a rate of 15%, he should do so. He would borrow $19 200 for 70 days at 15%. Maturity value of the loan is $19 200(1+0.15(70/365))=$19 752.33

savings would be $20 000 − $19 752.33 = $247.67

A) Rs. 14,400 | B) Rs. 15,600 |

C) Rs. 14,850 | D) Rs. 15,220 |

Explanation:

Let the required Sum = Rs.S

From the given data,

1008 = [(S x 11 x 5)/100] - [(S x 8 x 6)/100]

=> S = Rs. 14,400.

A) 16.75 yrs | B) 15.25 yrs |

C) 14 yrs | D) 13.5 yrs |

Explanation:

We know that,

**I = PTR/100**

ATQ,

15800 = 14800 x T x 6/100

T = 15800/148x7

T = 15800/1036

**T = 15.25 yrs.**

A) 5.5% | B) 6% |

C) 6.5% | D) 7% |

Explanation:

Principle amount = Rs. 29000

Interest = Rs. 10440

Let rate of interest = r%

=> So, time = r years

According to the question,

10440 = 29000 x r x r/100

290 x r x r = 10440

r x r = 1044/29 = 36

r = 6

Hence, the rate of interest = 6% and time = 6 yrs.

A) 1.58 | B) 2.63 |

C) 3.87 | D) 4.02 |

Explanation:

Let the two different rates of interests be r1 and r2 respectively.

From the given data,

$\frac{\mathbf{2600}\mathbf{}\mathbf{x}\mathbf{}\mathbf{4}\mathbf{}\mathbf{x}\mathbf{}\left(\mathbf{r}\mathbf{1}\mathbf{}\mathbf{-}\mathbf{}\mathbf{r}\mathbf{2}\right)}{\mathbf{100}\mathbf{}}\mathbf{}\mathbf{=}\mathbf{}\mathbf{402}\mathbf{.}\mathbf{80}\phantom{\rule{0ex}{0ex}}\phantom{\rule{0ex}{0ex}}\left(\mathrm{r}1-\mathrm{r}2\right)=\frac{402.80}{104}=\; 3.87$

Hence, the difference in the interest rates = **3.87**

A) 8% | B) 7.5% |

C) 9% | D) 8.5% |

Explanation:

From the given data,

3500x7xt/100 = 500

=> t = 100/49 years

Now, in the second case

The interest per year = 49/100 x 800 = 392

=> 4900 x 1 x r/100 = 392

=> **r = 8%**

A) 7.2% | B) 8% |

C) 8.5% | D) 9.3% |

Explanation:

We know,

**S.I = PTR/100** where P = principal amount, T = time, R = rate of interest

Here in the given data,

Interest for two years **S.I = 924 - 812 = Rs. 112**

Now, Principal amount **P = 812 - 112 = Rs. 700 **

Now,

**R = S.I x 100/PT**

R = 112 x 100/700 x 2

R = 11200/1400

R = 8%

Hence, the rate of interest **R = 8%**.

A) Rs. 800 | B) Rs. 620 |

C) Rs. 560 | D) Rs. 480 |

Explanation:

Let the principle amount be Rs. P

Interest rate = 12%

Total amount he paid after 5 years = Rs. 1280

ATQ,

$\mathbf{P}\mathbf{}\mathbf{+}\mathbf{}\mathbf{I}\mathbf{}\mathbf{=}\mathbf{}\frac{\mathbf{PTR}}{\mathbf{100}}\mathbf{}\mathbf{+}\mathbf{}\mathbf{P}\phantom{\rule{0ex}{0ex}}1280=\mathrm{P}\left[\frac{\mathrm{TR}}{100}+1\right]\phantom{\rule{0ex}{0ex}}\phantom{\rule{0ex}{0ex}}1280=\mathrm{P}\left[\frac{5\mathrm{x}12}{100}+1\right]\phantom{\rule{0ex}{0ex}}\phantom{\rule{0ex}{0ex}}\frac{16\mathrm{P}}{10}=1280\phantom{\rule{0ex}{0ex}}\phantom{\rule{0ex}{0ex}}\mathbf{P}\mathbf{}\mathbf{=}\mathbf{}\mathbf{80}\mathbf{}\mathbf{x}\mathbf{}\mathbf{10}\mathbf{}\mathbf{=}\mathbf{}\mathbf{800}$

Hence, the amount he borrowed = **P = Rs. 800.**

A) 0.3 Paise | B) 1.2 Paise |

C) 30 Paise | D) 3 Paise |

Explanation:

Given Principal amount P = Rs. 10

Time T = 4 months

Rate of interest R = 3 ps

Interest **I = PTR/100 = (10 x 4 x 3)/100 = 12/10** =** 1.2 paise.**