1. A owes B Rs. 20056 due 1 year hence. A wants to settle the account after 3 months. If the rate of interest is 12% per annum, the cash paid by A will be
(Rs. = Rupees)
a. Rs. 18050.40
b. Rs. 18400
c. Rs. 19200
d. Rs. 19120
EXPLANATION
12% is for 12 months
Therefore, rate of interest for 9 months is 9%
Cash paid by A
20,056 * 100 / 100 + 9 = 18400
2. If Rs. 64 amounts to Rs. 83.20 in 2 years following simple interest, what will Rs. 86 amount to in 4 years at the same rate percent per annum following simple interest?
(Rs. = Rupees)
a. Rs. 114.80
b. Rs. 124.70
c. Rs. 127,40
d. Rs. 137.60
EXPLANATION
83.20 – 64 = 19.2
Interest received in a year = 19.2 / 2= 9.6
Therefore, rate of interest = 9.6/64*100 = 15%
15%*4= 60%
100% —> 86
160% —-> 137.6
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