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01. Find the interest under simple interest for a principal of Rs. 840 at an interest rate of 4.5% per annum for a period of 3 years.
A. Rs. 37.8 B. Rs. 120
C. Rs. 113.4 D. Rs. 135

Answer and Explanation

Answer: Rs. 113.4

Explanation:
Simple Interest = PNR/100 = (840 × 3 × 9) / 100 × 2 = Rs. 113.4 

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02. If the difference between simple interest and compound interest on a certain sum for 2 years at 10% is Rs. 50, then find the sum
A. Rs. 5050 B. Rs. 4700
C. Rs. 5000 D. Rs. 3750

Answer and Explanation

Answer: Rs. 5000

Explanation:
(CI – SI)for 2 years = P(R/100)2
50 = P(10/100)2 = P/100
P = Rs. 5000

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03. Find the principal that would amount to Rs. 1200 at 8% per annum simple interest after 9 months
A. Rs. 864 B. Rs.1272
C. Rs. 1132.08 D. Rs. 1172

Answer and Explanation

Answer: Rs. 1132.08

Explanation:
A = P + SI T = 9 / 12 = 3 / 4 year
A = P + (PRT) / 100
A = P( 1 + RT / 100)
1200 = P [ 1 + (8 / 100 × 3 / 4)]
A = P (53/50) => P = (1200 × 50) / 53
P = Rs. 1132.08

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04. Find the interest under simple interest for principal of Rs. 300 at an interest of 3.75% per annum from March 5 to July 29.
A. Rs. 28.125 B. Rs. 4.5
C. Rs. 11.25  D. Rs. 4.25

Answer and Explanation

Answer: Rs. 4.5

Explanation:
Total number of days:
March April May June July
(31 – 5) 30 31 30 29
Time (T) = 26 + 30 + 31 + 30 + 29 = 146 days = 146 / 365 years
= 2 / 5 years
I = PRT/100 = 300/100 × 15/4 × 2/5 = 9/2 = 4.5 years

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05. A buys a house for Rs 23000. There is a ground rent of Rs 500 a year, and annual repairs come on an average to 1 ½ % on ht purchase price of the house. At what monthly rent must he let the house so as to get a return of 8% per annum on the purchase price?
A. Rs 123.75 B. Rs 423.75
C. Rs 223.75 D. Rs 523.75

Answer and Explanation

Answer: Rs 223.75

Explanation:
Expenses = Rs 500
Repairs = 1.5(23000)/100 = Rs 345
Total expenses= Rs 845
Returns expected = 23000(8/100) = Rs 1840
Total rent per year = Rs (1840 + 845) = Rs 2685
Rent per month = 2685/12 = Rs 223.75

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06. A, B and C borrow Rs 29200 in all at 4% SI and pay back equal in full settlement of their respective debts after 5,10 and 15 years respectively. Find the sum borrowed by each.
A. Rs 11200, Rs 9600, Rs 8400 B. Rs 1120, Rs 960, Rs 840
C. Rs 15200, Rs 5600, Rs 5400 D. Rs 13200, Rs 3600, Rs 3400

Answer and Explanation

Answer: Rs 11200, Rs 9600, Rs 8400

Explanation:
Let A, B, C borrow Rs x, Rs y, Rs z respectively
x + y + z = 29200…(i)
A pays back Rs x + x(4)(5/100) = Rs 6x/5
B pays back Rs y + y(4)(10/100) = Rs 7y/5
C pays back Rs z + z(4)(15/100) = Rs 8z/5
6x/5 = 7y/5 = 8z/5
i.e. 6x = 7y =8z…(ii)
Solving (i) and (ii) simultaneously
X = 11200 , y= 9600 ,z=8400
A, B, C borrow Rs 11200, Rs 9600, Rs 8400 Respectively 

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07. A certain sum of money double itself in 8 years at a simple interest in a firm but trebles itself in 17 years in another firm at simple interest. Which of the two firms pays better interest? And what are the rates?
A. 15.7% B. 11.7%
C. 12.7% D. 19.7%

Answer and Explanation

Answer: 11.7%

Explanation:
Let the sum invested be Rs x
Firm1:
x +x(8)(r/100) = 2x
r=12.5%
Firms2:
x +x(17)(r/100) = 3x
r=11.7%
the first firm pays better interest

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08. Mahajan lend out Rs 9 on the condition that the loan is payable in 10 months by 10 equal installments of Re 1 each. Find the rate of interest per annum.
A. 26 6/3% B. 26 4/3%
C. 26 2/3% D. 26 1/3%

Answer and Explanation

Answer: 26 2/3%

Explanation:
Let the rate of interest per month be r
Total amount repaid = Rs 10, Interest = Re 1
(r/100)(9+8+7+6+5+4+3+2+1) = 1 =>r = 100/45
Rate of interest per annum = (100/45)12 = 26 2/3%

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09. Divide Rs 6000 into two parts so that SI on the first part for 2 years at 6% p.a. may be equal to the simple interest on the second part for 3 years at 8% p.a.
A. Rs 4050, Rs 2050 B. Rs 400, Rs 200
C. Rs 4000, Rs 2000 D. Rs 5000, Rs 3000

Answer and Explanation

Answer: Rs 4000, Rs 2000

Explanation:
Let the two parts be P1 and P2
∴P1*2*6/100 =P2 *3*8/100
=> P1/P2=2/1
∴P1/2 =P2 /1 = 6000/3
∴P1 = Rs 4000 and P2 =Rs 2000

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10. A sum of money doubles itself in 10 years; in how many years will it treble itself at the same rate?
A. 30 years B. 10 years
C. 20 years D. 15 years

Answer and Explanation

Answer: 20 years

Explanation:
Let the sum of money be Rs x and the rate of interest be r%
x + x(r)(10/100) = 2x
r = 10%
Let the period be n years
x + x(10)(n/100) = 3x
n = 20 years

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