16
Q:

# An automobile financier claims to be lending money at simple interest, but he includesthe interest every six months for calculating the principal. If he is charging an interest of10%, the effective rate of interest becomes:

 A) 10% B) 10.25% C) 10.5% D) none of these

Explanation:

Let the sum be Rs. 100. Then,

S.I. for first 6 months = Rs.[ (100 x 10 x 1)/(100 x 2) ]= Rs.5

S.I. for last 6 months =Rs.[(102 x 10 x 1)/(100 x 2) ] = Rs.5.25

So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25

Effective rate = (110.25 - 100) = 10.25%

Q:

₹4,300 becomes ₹4,644 in 2 years at simple interest. Find the principle amount that will become ₹10,104 in 5 years at the same rate of interest.

 A) ₹7,200 B) ₹8,420 C) ₹9,260 D) ₹5,710

Explanation:

1 391
Q:

The simple interest on a certain sum at the end of three years at 5%p.a. is ₹1,200. The compound interest on the same sum for the same period at the same rate is (interest compounded yearly):

 A) ₹1,800 B) ₹1,261 C) ₹820 D) ₹1,260

Explanation:

3 1781
Q:

A sum of money invested for 4 years and 9 months at a rate of 8% simple interest per annum became Rs. 1,035 at the end 0 of the period. What was the sum that was initially invested?

 A) Rs. 700 B) Rs. 675 C) Rs. 725 D) Rs. 750

Explanation:

4 353
Q:

At what percent of simple interest will a sum 0f money double itself in 15 years?

 A) 6 1/3% B) 6 2/3% C) 6 1/2% D) 6%

Explanation:

3 387
Q:

What is the total earning after 2 years from Rs.18,750 on variable compound interest if the rate of interest for the first 4 year is 4% and for the second, it is 8%?

 A) ₹ 1,740 B) ₹ 1,760 C) ₹ 1,670 D) ₹ 2,310

Explanation:

1 1910
Q:

The simple interest on a sum of Rs.50,000 at the end of two years is Rs.4,000. What would be the compound interest on the same sum at the same rate for the same period ?

 A) 4,040 B) 4,080 C) 4,008 D) 8,000

Explanation:

1 1931
Q:

Rs. 775 invested for 6 years gives an interest of Rs. 372. The rate of simple interest per annum is:

 A) 8% B) 7% C) 9% D) 7.5 %

Explanation:

2 406
Q:

In how many wars will an amount be doubled at 28.75% annual rate of interest?

 A) 3.00 B) 3.90 C) 3.47 D) 6.00