Introduction : Time and work

SAMPLE PROBLEMS

1. An automobile financier claims to be lending money at 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. 10.5%
d. None of these

2. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to Another person at 1/64% p.a for 2 years. Find his gain in the transaction per year.

a. Rs.112.50
b. Rs.125
c. Rs.225
d. Rs.167.50

3. Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

a. Rs.8600
b. Rs.8620
c. Rs.8820
d. None of these

4. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

a. Rs.1550
b. Rs.1650
c. Rs.1750
d. Rs.2000

Answers—  1.B   2.A    3.C    4.C