Ms. Rao paid equated monthly installments (EMIs) of Rs. 25,000 each January and February towards her home lona, whose outstanding principal amount was Rs.10,00,000 in Decemner. Each EMI consists of interest on outstanding loan amount for the month and part payment of the loan amount. If interest on the loan is 12% per annum (interest is paid monthly on the demising outstanding loan), the total amount of interest that was paid by Ms. Rao in January and February was
Answer: C Interest is 12% per annum i.e. 1% per monthIn January: The loan amount is Rs.10,00,000 Interest = 1% of Rs.10,00,00 = Rs.10,000In February:The remaining loan amount is= 10,00,000 + 10,000 – 25,000 = Rs.9,85,000Interest = 1% of 9,85,000 = Rs.9850Total amount of interest paid in Jan and Feb= 10,000 + 9850 = Rs. 19850.
Q. No. 8:
A certain sum of money is invested at an interest rate of 5% per annum and a second sum, twice as large as the first, is invested at 5.5% per annum. The total amount of interest earned from the two investments together is Rs. 1000 per year and the interest is withdrawn every year. The second sum invested is:
Answer: C Let the first sum invested be Rs.x and second sum invested is Rs.2x. => (x*5*1/100) + (2x*5.5*1/100) =1000 => x= Rs 6250 Hence second sum invested will be Rs.12500.
Q. No. 9:
Mungeri Lal has two investment plans- A and B, to choose from. Plan A offers interest of 10% compounded annually while plan B offers interest of 12% per annum. Till how many years is plan B a better investment?
Answer: B In case of compounded annually. Let P be the initial investment in plan A A1 = P(1+ 10/100)n = p(1.1)n....(i) In case of simple interest in plan B A2 = P + P*n*12/100 = P(1 + n*0.12) Checking at different values of n = 1, 2, 3, 4, 5 A1 becomes greater than A2 when n = 5. Hence upto 4 years, plan B is better than plan A.
Q. No. 10:
A sum of Rs 1440 is lent out in three parts in such a way that the interests on first part at 2% for 3 years, second part at 3% for 4 year and the third part 4% for 5 years are equal. Then the difference between the largest and the smallest sum is :
Answer: B SI1 : SI2 : SI3 = x*6% : y*12% : z*20% = k x : y: z = [k/6 : k/12 : k/20 ] * 60 = 10 :5:3 Required difference = 7/18 * 1440 = Rs 560.
Q. No. 11:
One can purchase a flat from a house building society for Rs 55,000 cash or the terms that he should pay Rs 4275 as cash down payment and the rest in three equal yearly installments. The society charges interest at the rate of 16% per annum compounded half yearly. If the flat is purchased under installment plan, find the value of each installment.
Answer: B Cash price of the flat = Rs 55,000 In the installments plan, cash down payment = Rs 4275 Present value to be paid in installments = 55000 - 4275 = 50,725 Let each installment be Rs x. Rate = 16% per annum = 8% half yearly. A = P (1+ r/100)t x = P (1+ 8/100)1 => P = Rs 25x/27 Similarly, principal for the 2nd installment = (25/17)2 x Principal for the 3rd installment = (25/17)3 x Total principal = 25x/27 + (25/17)2 x + (25/17)3 x = 50,725 On solving, we get x = Rs 19,683. Each installment = Rs 19,683
Q. No. 12:
The compound interest accured on an amount of Rs 25,000 at the end of four years is Rs 5387.65625. What would be the simple interest accured on the same amount at the same rate in the same period ?