a2zinterviews

17.	Reena took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest?
	A.  3.6
	B.  5.6
	C.  6
	D.   18

Solution

Let rate = R% and time = R years. Then (1200 x R x R / 100) ‹=› 432 ‹=›12R2 = 432 ‹=›R2 = 36 ‹=› 6.

18.	A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9. p.c.p.a in 5 years. What is the sum?
	A.  Rs.4462.50
	B.  Rs.8032.50
	C.  Rs.8900
	D.  Rs.8925

Solution

Principal = Rs. (100×4016.25 / 9×5) ‹=› Rs. (401625/45) ‹=› Rs. 8925.

19.	An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes
	A.  10%
	B.  10.25%
	C.  10.5%
	D.  None of these

Solution

Let the sum be Rs. 100. S.I. for first 6 months = Rs.(100×10×1/100×2) = Rs. 5. S.I. for last 6 months = Rs.(105×10×1/100×2) = 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%.

20.	An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes
	A.  10%
	B.  10.25%
	C.  10.5%
	D.  None of these

Solution

Let the sum be Rs. 100. S.I. for first 6 months = Rs.(100×10×1/100×2) = Rs. 5. S.I. for last 6 months = Rs.(105×10×1/100×2) = 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%.