**1. Mr. Ravi finds that due to a fall in the rate of interest from 9% to 6%, his yearly income diminishes by Rs.267. His capital is ?**

A. Rs.3800

B. Rs.8400

C. Rs.8600

D. Rs.8900

Answer

Option (d) is correct

**Explanation –**

Difference in Rate of Interest = 9% – 6% = 3%

Capital = x

3% of x = 267

x = 8900

**2. If the simple interest on a certain sum of money is 4/25th of the sum and the rate percent equals the number of years, then the rate of interest per annum is:**

A.2%

B.4%

C.8%

D.10%

Answer

Option (b) is correct

**Explanation –**

Let principal =x

then SI= 4/25 x

let rate be ” r” then time =r years

SI= PXRXT /100

put all here all will cut and we left with

**3. An automobile financier claims to be lending money at the 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.10.10%

D.10.80%

Answer

Option (b) is correct

**Explanation –**

Let the sum be Rs. 100. Then,

S.I. for first 6 months = Rs. [100 x 10 x 1] / [100×2]= Rs. 5.

S.I. for last 6 months = Rs.[105 x 10 x 1] / [100 x 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%.

**4. The difference between the simple interest received from two different sources on Rs. 1500 for 3 years is Rs. 13.50. The difference between their rate of interest is:**

A.0.20%

B.0.30%

C.0.50%

D.0.80%

Answer

Option (b) is correct

**Explanation –**

SI=PXRXT/100 so,SI( 1) – SI (2)

[1500 x R1 x 3] /100 – [1500 x R2 x 3] /100 =13.5

4500 (R1 – R2) = 1350

R1 – R2 =1350/4500=0.30%

**5. Nishu invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?**

A.6400

B.6500

C.7200

D.7500

Answer

Option (a) is correct

**Explanation –**

Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs. (13900 – x).

Then, ( x X 14 X 2 ) /100 + [(13900 – x) X 11 X 2] /100= 3508

28x – 22x = 350800 – (13900 X 22)

6x = 45000

x = 7500.

So, sum invested in Scheme B = Rs. (13900 – 7500) = Rs. 6400.

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