Aptitude - Simple Interest - Discussion
Discussion Forum : Simple Interest - General Questions (Q.No. 7)
7.
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:
Answer: Option
Explanation:
Let the sum be Rs. 100. Then,
| S.I. for first 6 months = Rs. |  |
100 x 10 x 1 |  |
= Rs. 5 |
| 100 x 2 |
| S.I. for last 6 months = Rs. | |
105 x 10 x 1 | |
= Rs. 5.25 |
| 100 x 2 |
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25
Effective rate = (110.25 - 100) = 10.25%
Discussion:
118 comments Page 1 of 12.
Melkam getaneh said:
3 years ago
SI = PRT/100.
Let p = 200.
SI=200*10*1/2 divided by 100=10 for six month,
SI=210*10*1/2 divided by 100=10.5 for second six months,
SI for one year = 220.5 - 200 = 20.5.
Now, I=PRR/100.
20.5 = 200 * R * 1/100,
20.5 * 100 = 200R,
2050 = 200R,
R = 2050/200,
R = 10.25.
Let p = 200.
SI=200*10*1/2 divided by 100=10 for six month,
SI=210*10*1/2 divided by 100=10.5 for second six months,
SI for one year = 220.5 - 200 = 20.5.
Now, I=PRR/100.
20.5 = 200 * R * 1/100,
20.5 * 100 = 200R,
2050 = 200R,
R = 2050/200,
R = 10.25.
(47)
Sonam said:
2 years ago
Here,T = 0.5 month or 1/2 month (6month)
For that, they are multiplying denominators by 2.
For that, they are multiplying denominators by 2.
(23)
Akash S G said:
2 years ago
Why is it getting compounded even though its simple interest? Shouldn't it be;
100 * 2 * 10 / 200 also by the given logic of the question for 10 years, how will you calculate it will you keep compounding?
Anyone, explain it clearly.
100 * 2 * 10 / 200 also by the given logic of the question for 10 years, how will you calculate it will you keep compounding?
Anyone, explain it clearly.
(23)
Pankaj Shelke said:
3 years ago
Why We consider 100 at starting?
Please explain.
Please explain.
(22)
Zaid said:
4 years ago
Jadhav, it is written in the question he adds interest obtained, after every six months.. So interest obtained in 6 months was 5rs
He added this to principal after 6 months and calculated SI for the rest 6 of months using this added principal amount (using 105)..he now gets principal as 5.25
So, for first six months , SI=5
Remaining six months, SI=5.25
Total SI =10.25
Hope this helps
He added this to principal after 6 months and calculated SI for the rest 6 of months using this added principal amount (using 105)..he now gets principal as 5.25
So, for first six months , SI=5
Remaining six months, SI=5.25
Total SI =10.25
Hope this helps
(11)
Joy said:
2 years ago
Why are they multiplying denominators by 2? Please, anyone, help me by explaining.
(11)
Nikita said:
4 years ago
I am not getting it.
How they are calculating 105. It should be 100, right?
How they are calculating 105. It should be 100, right?
(8)
Sachin said:
4 years ago
@All.
Here it includes the interest every six months for calculating the principal. So they are calculating 105.
Here it includes the interest every six months for calculating the principal. So they are calculating 105.
(7)
Shima said:
1 year ago
Effective rate = [(1+(r/n))^n] - 1.
r = 10.
n = 2 (1 interest per 6 months so 2 for 1 year).
r = 10.
n = 2 (1 interest per 6 months so 2 for 1 year).
(6)
Tshering Tobgay said:
1 year ago
R = e^i-1
= e^(0.1)-1
= 1.105-1
= 0.105
= 10.5%.
= e^(0.1)-1
= 1.105-1
= 0.105
= 10.5%.
(6)
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