x is a minor for studying in the m com college on 1st july 2019 took a loan of rupees 100000 from b for payment of his college fees and to purchase books and agrees to repay by 31st december 2019 expose its assets what nine lives and due date expense to pay back the loan to be be now wants to recover the loan from x out of re for preparing the provisions of the indian contract act 1872 decide whether we would succeed?
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Answer:
Simple and Compound Interest Practice Questions for Quantitative Techniques
Simple and Compound Interest Practice Questions for Quantitative Techniques
Question 1: If Sneha invests some sum of money lets say P in Equity market which amounts to Rs. 990 in 2.5yrs with Simple Interest while it amounts to Rs. 1044 in 4 yrs. Answer the following questions based on the above data.
What is the rate of interest?
a) 4% b) 6% c) 3% d) 5%
What is the Principal amount that was invested?
Rs. 950 b) Rs. 900 c) Rs. 930 d) Rs. 980
In how many years the amount will double itself with Simple Interest at 8%?
12.5 yrs b) 10 yrs c) 9.09 yrs d) 11.11 yrs
If the interest was compounded instead of simple Interest, then how much Sneha would have earned in 3 yrs? Use R as of 1st part of this question.
Rs.1008 b) Rs.1067 c) Rs. 1012 d) Rs. 1030
If the rate of compounding increased by 10% after 3 years and two-year compounding is done, what is the amount after 5 years?
Rs. 1055 b) Rs.1045 c)Rs.1032 d) Rs.1152
Question 2: Varun borrowed a total sum of Rs. 250,000 from 2 money lenders. For one loan, he paid interest at 7.5% per annum and the other loan at 10% per annum. The interest calculation is based on Simple Interest concept.
If the Total interest paid is 9.35%, What is the interest paid in the 1st year?
Rs.26730 b) Rs. 23375 c) Rs. 24450 d) Rs. 25750
If the borrowed sum is in the ratio of 3:2, then what is loan amount from 2nd lender?
Rs. 100000 b) Rs. 150000 c) Rs. 10000 d) Rs. 15000
What is the interest amount to pay for 1st loan with 7.5% in one year?
Rs. 11000 b) Rs. 15000 c) Rs. 11250 d) Rs. 10250
How many years it would take to pay triple the loan amount?
22 yrs b) 10.695 yrs c) 20.5 yrs d) 21.39 yrs
What is the total amount he is paying every year if the period to loan repay is 10yrs?
Rs. 48375 b) Rs. 45000 c) 50112 d) Rs. 47000
Solution and Answers
Ans: a) 4%
Sol: 990 = P( R * 2.5 / 100 + 1) … eq(1)
1044 = P (R * 4 / 100 +1) … eq(2)
Dividing eq(2) by eq(1), we get
1044/990 = (R/25 +1)40/25(R/40+1)
On solving the above equation we get R=4%
Ans: b) Rs. 900
Sol: Using the equation from the previous question, substituting R=4%, we get P = 900
Ans: a) 12.5yrs
Sol: The formula for doubling the amount will be used here,
R= 8%; T = 100/8 = 12.5yrs
Ans: c) Rs. 1012
Sol: Amount = P(1+R/100)T
A = 900(1+4/100)3 = 1012.37
Ans: d) Rs. 1152
Sol: Rate of Interest increased by 10% after 3 yrs, hnce new R= 4%*1.1 = 4.4%
Amount = 900(1+4/100)3(1+4.4/100)2 (using the formula for different rate of interest.
= 1151.97
Ans: b) Rs. 23375
Sol: P =Rs. 250000; Annual R for both loans combined= 9.35%
Interest = PR*1/100 = 250000*9.35/100 = Rs. 23375
Ans: a) Rs. 100000
Sol: Ratio of the loan amount is 3:2 for two lenders hence second loan amount would be 2/5 part of Total loan i.e., 250000*2/5 = Rs. 100000
Ans: c) Rs. 11250
Sol: As the loan from the first lender was Rs. 250000*3/5 = Rs. 150000
Interest for the first loan for 1 year = PR*1/100 = 150000*7.5/100 = Rs. 11250
Ans: d) 21.39 yrs
Sol: The formula for tripling the amount will be used here,
R= 9.35%; T = 200/9.35 = 21.39 yrs
Ans: a) 48375
Sol: Amount = 250000(9.35*10/100 + 1 ) = Rs. 483750
Yearly payment = 483750/10 = Rs. 48375
Read the theory on Simple and Compound Interest here.
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