Tag: banks and simple interest

Questions Related to banks and simple interest

A certain sum of money is put at compound interest, compounded half-yearly. If the interest for two successive half-years are Rs. 650 and Rs. 760.50; find the rate of interest. 

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $34$

  2. $32$

  3. $27$

  4. $38$

Show answer
Correct Option: A
Explanation:

Difference between the C.I of two successive half -years=$760.50-650=110.50$

Time =6 months=$\frac{6}{12}=\frac{1}{2}years$
Rate of interest$=\frac{Difference  between  the  C.I  of  two  successive year\times100 }{C.I  of  preceding   year\times time}$

$\therefore$Rate of intereast=$\frac{110.50\times 100\times 2}{650\times 1}=34$%  

A certain sum amounts to Rs. 5,292 in two years and Rs. 5,556.60 in three years, interest being compounded annually. Find the rate of interest.

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. 9%

  2. 15%

  3. 7%

  4. 5%

Show answer
Correct Option: D
Explanation:

Sum after 2 years $=Rs.5292$


Sum after 3 years $=Rs.5556.60$

Interest for onr year $=5556.60-5292=Rs. 264.60$

C.I for 1 year $=$ S.I for 1 year 

$Interest =\dfrac{PRT}{100}$

$\Rightarrow 264.60=\dfrac{5292\times R\times 1}{100}$

$\Rightarrow R=\dfrac{264.60\times 100}{5292}=5$%

Mohit invests Rs. 8,000 for 3 years at a certain rate of interest, compounded annually. At the end of one year it amounts to Rs. 9,440. Calculate: the rate of interest per annum.

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. 12%

  2. 14%

  3. 18%

  4. 22%

Show answer
Correct Option: C
Explanation:

$P=Rs.8000$


$Time =\ 1 \ year$


$Amount=9440$

Interest for 1 year$=9440-8000=Rs.1440$

$Interest=\dfrac{PRT}{100}$

$1440=\dfrac{8000\times R\times 1}{100}$

$R=\dfrac{1440\times 100}{8000}=18$%

A company pays a dividend of 15% on its ten-rupee shares from which it deducts income tax at the rate of 22%. Find the annual income of a man who owns one thousand shares of this company.

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. 1170

  2. 1270

  3. 1070

  4. 1330

Show answer
Correct Option: A
Explanation:
Annual Income $=Rs.\ \dfrac{(10×1000×15)}{100}$
$=Rs.\ 1500$
Income tax deducted $= \dfrac{(22×1500)}{100}$
$=Rs.\ 330$
So, Total Income$=Rs.\ 1500 - 330$
$= Rs.\ 1170 .$

At what rate percent will a sum of money doubles in $16$ years?

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $\dfrac{25}{4}\%$

  2. $\dfrac{21}{4}\%$

  3. $5\%$

  4. $15\%$

Show answer
Correct Option: A
Explanation:

Let sum of money be $p$.

Thus, amount will be $2p$
Then S.I $= p$
Rate $=\dfrac{100 \times p}{p \times 16}=\dfrac{25}{4}$ $\%$

You invested Rs. $1500$ and received Rs. $5000$ after three years. What had been the interest rate?

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $111.11\%$

  2. $222.22\%$

  3. $333.33\%$

  4. $77.77\%$

Show answer
Correct Option: D
Explanation:

Amount invested $= 1500$

Amount received after three years $= 5000$

$\Rightarrow$ Interest earned $= 5000-1500 = 3500$
Let interest rate$\%$ be $r$
$\Rightarrow$ $3500 = \dfrac{1500 \times 3 \times r}{100}$
$\Rightarrow$ $r = 77.77\%$

You borrow Rs. $4,000$ from a loan shark. If you owe Rs. $7,200$ in $4$ years, what would be the simple interest rate?

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $10\%$

  2. $20\%$

  3. $30\%$

  4. $40\%$

Show answer
Correct Option: B
Explanation:

Given:
Principal $=$ Rs. $ 4,000$
Interest $= 7200 - 4000 = 3200$
We know the formula,
Rate of interest, $R =$ $\dfrac{I\times 100}{PT}$
$\Rightarrow R =$ $\dfrac{3200\times 100}{4000\times 4}$
$\Rightarrow R = 20\%$

Thus, the simple interest rate is $20\%$.

John earned Rs. $100$ as simple interest on Rs. $600$ for $6$ months. Find the annual rate of interest.

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $11.11\%$

  2. $22.22\%$

  3. $33.33\%$

  4. $44.44\%$

Show answer
Correct Option: C
Explanation:
Given, Simple interest $=$ Rs. $100$, Principal $=$ Rs. $600$ and period $6$ months
We know the formula,
Rate of interest, $R =$ $\dfrac{I\times 100}{PT}$
$R =$ $\dfrac{100\times 100}{600\times 0.5}$
$R = 33.33\%$
Therefore, the annual rate of interest is $33.33\%$.

Sharmila got a Rs. $1300$ loan for $5$ years. She paid Rs. $100$ in interest. What was the interest rate?

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $1.1\%$

  2. $1.3\%$

  3. $1.5\%$

  4. $1.7\%$

Show answer
Correct Option: C
Explanation:
Given, principal $=$ Rs. $1300$, Interest $=$ Rs. $100$, period $=5$ years
We know the formula,
Rate of interest, $R =$ $\dfrac{I\times 100}{PT}$
$\Rightarrow R =$ $\dfrac{100\times 100}{1300\times 5}$
$\Rightarrow R = 1.5\%$
Therefore, the interest rate is $1.5\%$.

Find rate, when principal $=$ Rs. $3000$; interest $=$ Rs. $400$; time $= 3$ years.

mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

  1. $1.11\%$

  2. $2.22\%$

  3. $3.33\%$

  4. $4.44\%$

Show answer
Correct Option: D
Explanation:

Given, Principal $=$ Rs. $3000$, interest $=$ Rs. $400$, time $=3$ years
We know the formula,
Rate of interest, $R =$ $\dfrac{I\times 100}{PT}$
$R =$ $\dfrac{400\times 100}{3000\times 3}$
$R = 4.44\%$