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 10 of 12.
Gautham said:
8 years ago
Why should we need to consider the amount to be 100?
RAVI DAS said:
8 years ago
Let the sum be Rs. 100. Then,
S.I. for first half year = Rs. (100 x 10 x 1)/(100x2) = Rs. 5.
S.I. for last half year = Rs. (105 x 10 x 1)/(100x2) = Rs. 5.25.
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25.
Effective rate = (110.25 - 100) = 10.25%.
S.I. for first half year = Rs. (100 x 10 x 1)/(100x2) = Rs. 5.
S.I. for last half year = Rs. (105 x 10 x 1)/(100x2) = Rs. 5.25.
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25.
Effective rate = (110.25 - 100) = 10.25%.
Pooja said:
7 years ago
Why the total sum is 100?
Nathan said:
7 years ago
We can as well take the sum(P) to be 200.
After calculating the simple interest in 6months we get 10,
Add that 10 to the sum making now 210 repeat the tabulation for interest for the remaining months 6.
Then, you get 10.5.
Add the two 10+10.5=20.5.
So. total simple interest is 20.5/200 x 100 which is 10.25.
After calculating the simple interest in 6months we get 10,
Add that 10 to the sum making now 210 repeat the tabulation for interest for the remaining months 6.
Then, you get 10.5.
Add the two 10+10.5=20.5.
So. total simple interest is 20.5/200 x 100 which is 10.25.
Khushi said:
7 years ago
Thank you @Sushmita.
Raghu said:
7 years ago
For six months 100*1/2=50 but they have taken 100*2 why?
Priya said:
7 years ago
Thank you @Sushmitha.
Aditya said:
7 years ago
100*r*1/100=10.25 since p*r*t/100= S.I
By, solving we will get r = 10.25 answer.
By, solving we will get r = 10.25 answer.
Arun said:
7 years ago
Why they are assuming p as 100 why can't we take any oter values?
Vikul Chauhan said:
7 years ago
The easiest way to do this question is;
Let principal =100.
A=100 [1+4/100] =112.4864.
The interest of one year 12.48.
Effective rate of interest = 12.5%.
Let principal =100.
A=100 [1+4/100] =112.4864.
The interest of one year 12.48.
Effective rate of interest = 12.5%.
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