Aptitude

Question:
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

Answer: Option B

Explanation:

Let the sum be Rs. 100. Then,

S.I. for first 6 months = Rs.		100 x 10 x 1		= Rs. 5
		100 x 2

S.I. for last 6 months = Rs.		105 x 10 x 1		= Rs. 5.25
		100 x 2

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

Effective rate = (110.25 – 100) = 10.25%

Question: What will be the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years?
[A].

1 : 3

[B].

1 : 4

[C].

2 : 3

[D].

Data inadequate

Answer: Option C

Explanation:

Let the principal be P and rate of interest be R%.

Required ratio =	P x R x 6 100	=	6PR	=	6	= 2 : 3.
	P x R x 9 100		9PR		9

Video Explanation: https://youtu.be/GaaEDwTWc6w

Question: A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?
[A].

Rs. 35

[B].

Rs. 245

[C].

Rs. 350

[D].

Cannot be determined

Answer: Option D

Explanation:

We need to know the S.I., principal and time to find the rate.

Since the principal is not given, so data is inadequate.

Question:
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

Answer: Option D

Explanation:

Principal	= Rs. 100 x 4016.25 9 x 5
	= Rs. 401625 45
	= Rs. 8925.

Question: A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:

[A].

Rs. 2000

[B].

Rs. 10,000

[C].

Rs. 15,000

[D].

Rs. 20,000

Answer: Option C

Explanation:

Principal = Rs.		100 x 5400		= Rs. 15000.
		12 x 3

Question: 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].

6

[C].

18

[D].

Cannot be determined

Answer: Option B

Explanation:

Let rate = R% and time = R years.

Then,		1200 x R x R		= 432
		100

12R2 = 432

R2 = 36

R = 6.

Video Explanation: https://youtu.be/TjjI4iRkzT0

Question: A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?
[A].

3%

[B].

4%

[C].

5%

[D].

6%

Answer: Option D

Explanation:

S.I. = Rs. (15500 – 12500) = Rs. 3000.

Rate =		100 x 3000	%	= 6%
		12500 x 4

Video Explanation: https://youtu.be/SIcQu1HOmOk

Question: How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?
[A].

3.5 years

[B].

4 years

[C].

4.5 years

[D].

5 years

Answer: Option B

Explanation:

Time =		100 x 81	years	= 4 years.
		450 x 4.5

Video Explanation: https://youtu.be/WdBzN0Sj8jc

Question: A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6% p.a for 2 years. Find his gain in the transaction per year.
[A].

Rs. 112.50

[B].

Rs. 125

[C].

Rs. 225

[D].

Rs. 167.50

Answer: Option A

Explanation:

Gain in 2 years	= Rs. 5000 x 25 x 2 – 5000 x 4 x 2 4 100 100
	= Rs. (625 – 400)
	= Rs. 225.

Gain in 1 year = Rs.		225		= Rs. 112.50
		2

Video Explanation: https://youtu.be/zBjcwqIcmL4