Q1.
If interest is calculated uniformly on the similar principal throughout the period, it is called
Solution.
Simple Interest .
Solution
Q2.
If interest is calculated on interest, it is example of compound interest. (True/False)
Solution.
True .
Solution
Q3.
Effective interest rate is related to the amount of principal (True/False).
Solution.
False
Note : It is related to number of compounding .
Solution
Q4.
The ratio of SI earned by certain amount at the same rate of interest for 6 years and 7 years .
Solution.
SI1/SI2
=
=
6/7
SI
1 : SI
2 = 6 : 7
Solution
Q5.
The rate of SI in two banks A and B are 4:5 . A person want to receives same quaterly interest on his saving, suggest in what ratio he
should deposit the amount in both banks A and B .
Solution.
Let amount deposited in both banks are X and Y
SI
A = SI
B
X. 4x/400
=
Y . 5x/400
4X = 5Y ⇒
X/Y
=
5/4
⇒ X : Y = 5 : 4
Solution
Q6.
Find the rate of SI, if SI of 10 years is
2/
5
of amount .
Solution.
Let A = Rs. x
SI =
2/
5
x
P =
3x/
5
SI =
prt/
100
⇒
2/
5
x =
3x . r . 10/
500
r = 6.66%
Solution
Q7.
A person deposited some value n a bank, that time rate of SI was 6%, now the same is 8% then he received Rs. 3000 more interest
than earlier in 5 years find principal .
Solution.
P =
(X) x 100/
(rate difference) x time
P =
3000 x 100/
2 x 5
= 30,000
Solution
Q8.
In how many years a money becomes 7 time at the rate of 12% p.a. SI .
Solution.
t =
(n - 1) x 100/r
(7 - 1) x 100/
12
=
6 x 100/
12
= 50 yrs
or
6p =
p x 12 x t/
100
⇒
600/
12
= t ⇒ t = 50 years .
Solution
Q9.
Effective rate of interest is always equal to nominal rate . (True/False)
Solution.
False
Note : Effective rate is always more than nominal rate .
Solution
Q10.
Rs . 3689 is divided into three parts such that their interest after 1,2,and 3 years may be equal. The rate of interest is 5% .
find the ratio
between these part .
Solution.
1/
r1 t1
:
1/
r2 t2
:
1/
r3 t3
(Trick)
1/
5
:
1/
10
:
1/
15
= 3 : 2 : 1
Solution
