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 9 of 12.
Dharmdev said:
5 years ago
I am not getting this.
Please, anyone, explain me in detail to get it.
Please, anyone, explain me in detail to get it.
Riya das said:
8 years ago
Why we subtract the final amount from the sum to get effective rate?
Ram said:
8 years ago
The solution has compounded the interest instead of simple interest.
Arun said:
7 years ago
Why they are assuming p as 100 why can't we take any oter values?
Kapil said:
9 years ago
Why we divide it by 2 for find the simple interest for 6 months?
Sushmita said:
1 decade ago
SI for 1 year =10.25
10.25=100*R*1/100
=10.25
Hence r=10.25
10.25=100*R*1/100
=10.25
Hence r=10.25
(1)
Vaibhav kadu said:
8 years ago
Here, it is not mentioned to calculate for one year tenure.
Raghu said:
7 years ago
For six months 100*1/2=50 but they have taken 100*2 why?
Nitish said:
5 years ago
Do effective rate of interest mean interest for 1 year?
Gautham said:
8 years ago
Why should we need to consider the amount to be 100?
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