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:
120 comments Page 11 of 12.
Himika said:
1 decade ago
Hows it possible to solve without time?
(1)
Shilpa said:
1 decade ago
What is effective rate of interest?
Jhansi said:
7 years ago
@Kalpesh.
What is eff.interest?
What is eff.interest?
Aashik said:
6 years ago
Why we should take P as only Rs100.
HaRiKa said:
9 years ago
Superb explanation. Thank you all.
Sravani said:
1 decade ago
Can any one explain in easy way ?
Nila Maity said:
3 years ago
It's very helpful for me, Thanks.
(1)
Aditya said:
1 month ago
This is very helpful, Thanks all.
Deekshit said:
1 decade ago
Is they calculated for SI or CI?
John said:
10 years ago
Why not the value of P be 1000?
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers