Simple Interest

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