Question : A moneylender claims he lends money at a simple rate of interest of 8% per annum. But he cleverly includes the interest amount in the principal when he calculates it every six months. The effective Rate of interest becomes:
Option 1: 8.16%
Option 2: 8.2%
Option 3: 8.8%
Option 4: 8.25%
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Correct Answer: 8.16%
Solution : Let the amount lent be Rs. 100. We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$ Simple Interest for first 6 months = $\frac{100\times 8\times \frac{1}{2}}{100}$ = Rs. 4 Increased principal = Rs. 104 Simple Interest for next 6 months = $\frac{104\times 8\times \frac{1}{2}}{100}$ = Rs. 4.16 Total Interest = 4 + 4.16 = Rs. 8.16 So, Interest rate = $\frac{8.16}{100}\times 100$ = 8.16% Hence, the correct answer is 8.16%.
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Question : A financial institution claims that it returns three times the principal in 25 years on a certain rate of simple interest per annum. What is the rate of simple interest?
Option 1: 8%
Option 2: 6%
Option 3: 4%
Option 4: 5%
Question : A sum of Rs. 2,000 becomes Rs. 3,120 in two years at a certain rate of simple interest. What is the rate of interest per annum?
Option 1: 34% per annum
Option 2: 33% per annum
Option 3: 30% per annum
Option 4: 28% per annum
Question : A person borrows Rs. 20000 at the rate of 6% per annum on simple interest for 3 years. He immediately lends it to another person at the rate of 8.5% per annum on simple interest for 3 years. What is the value of gain per year?
Option 1: Rs. 1500
Option 2: Rs. 500
Option 3: Rs. 800
Option 4: Rs. 200
Question : A sum of Rs. 8,000 is divided into two parts. The simple interest on the first part, at a rate of 21% per annum, is equal to the simple interest on the second part, at a rate of 35% per annum. What is the interest (in Rs.) of each part?
Option 1: 1050
Option 2: 840
Option 3: 1400
Option 4: 1220
Question : A man borrowed a certain sum of money at the rate of 10% per annum simple interest for the first three years and 15% per annum simple interest for the period beyond three years. If he pays a total interest of INR 2,884.50 at the end of 7 years, then the sum of money (in INR) that he borrowed is:
Option 1: 3,860
Option 2: 3,090
Option 3: 4,550
Option 4: 3,205
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