Question : A person borrowed INR 2,000 at 5% annual simple interest repayable in 3 equal annual instalments. What will be the annual instalment?
Option 1: INR $730\frac{10}{63}$
Option 2: INR $840\frac{10}{63}$
Option 3: INR $640\frac{11}{63}$
Option 4: INR $250\frac{10}{63}$
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Correct Answer: INR $730\frac{10}{63}$
Solution : P = INR 2,000 Rate = 5% Time = 3 years Instalment = $\frac{A\times 100}{N\times 100 + ((N-1) + (N-2) + .....1)\times R }$ where, $A$ = Amount, $R$ = Rate, $N$ = Number of Years Simple Interest = $\frac{P\times R\times T}{100} = \frac{2000\times 5\times 3}{100} = 300$ Amount = 2000 + 300 = Rs. 2300 Instalment = $\frac{2300\times 100}{3\times 100 + (2+1)\times 5}$ $= \frac{46000}{63} = 730\frac{10}{63}$ Hence, the correct answer is INR $730\frac{10}{63}$.
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Question : The interest earned on INR 21,000 in 3 years at Simple Interest is INR 6,400. What is the rate of interest per annum?
Option 1: $10\frac{5}{63} \%$
Option 2: $10\frac{2}{63} \%$
Option 3: $10\frac{13}{63} \%$
Option 4: $10\frac{10}{63} \%$
Question : Rajnish borrowed INR 1,500 from a bank and repaid the entire amount with interest in two equal annual instalments, the first instalment being paid a year after Rajnish borrowed from the bank. If the rate of interest was 40% per annum, compounded annually, then what was the value (in INR) of each instalment paid by Rajnish?
Option 1: 1125
Option 2: 1470
Option 3: 1225
Option 4: 1350
Question : A sum of Rs.10 is lent by a child to his friend to be returned in 11 monthly instalments of Re.1 each, the interest being simple. The rate of interest is:
Option 1: $11 \frac{9}{11} \%$
Option 2: $21 \frac{9}{11} \%$
Option 3: $10 \frac{2}{11} \%$
Option 4: $9 \frac{1}{11} \%$
Question : A loan is to be returned in two equal yearly instalments. If the rate of interest is 10% p.a., compounded annually, and each instalment is INR 5,808, then the total interest charged in this scheme is:
Option 1: INR 1,563
Option 2: INR 1,536
Option 3: INR 1,632
Option 4: INR 1,602
Question : What is the present worth of INR 1,100 due in 2 years at 5% simple interest per annum?
Option 1: INR 3,000
Option 2: INR 2,000
Option 3: INR 1,000
Option 4: INR 1,500
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