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 11 of 12.
Shilpa said:
1 decade ago
What is effective rate of interest?
Jhansi said:
6 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:
8 years ago
Superb explanation. Thank you all.
Sravani said:
1 decade ago
Can any one explain in easy way ?
Nila Maity said:
2 years ago
It's very helpful for me, Thanks.
(1)
Deekshit said:
1 decade ago
Is they calculated for SI or CI?
John said:
9 years ago
Why not the value of P be 1000?
Nikhil said:
5 years ago
How come 100 * 2 here? explain.
Amit said:
1 decade ago
Period has not been mentioned?
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers