Aptitude - Simple Interest - Discussion

@ALL.

Here, it isn't clearly stated that that 33.50 is collected as all together form both the loans.

So, how to get the answer? Please tell me.

Hello guys.

Let me clarify this logic is simple.

The amount 725 is given at rate 'R'.
After 8 months, another amount 362.5 is given at the rate '2R'.
It means 2R is for the amount 362.5, and that too only for 4 months.
While the rate 'R' on 725 would be counted for one whole year. Not just for 8 months.

Thank you everyone for explaining it.

In a problem, it is clearly given that, Total amount earned from both loan is 33.50 which is earned at the end of year. It means in a one year.

So as per my solution time for both loan should be 8 months, ie. 8/12 year & 4 months ie. 4/12 year.

But in given solution why the time took 1 year for the first loan. Please explain.

There are 2 loan consider A(725) and B(362.50). Loan A is taken for 1 year with some interest (R), at the end of eight-month another loan is taken which is B with interest (2R). That is one loan is for 1 year and another loan is for 4 months. By the end of the year SI = loan for one year(725) + loan for 4 months(362.5) ie 725 x R x 1 /100+ 362.50 x 2R x 1/100 * 3 = 33.50.

In the question, it's mentioned the interest is per annum hence we need to take T as 2/3 in first case & 1/3 in the second case.

@Rajni.

I thank you for raising the question.

Look here, any interest is calculated, as we generally know at the end of the year. Now you read the problem carefully. The first loan is taken at the beginning of the year, thus the person will be charged the interest for 12 months, but the last one is after 8 months, meaning the person will be charged only 4 months, he has no relation with the previous 8 months, thus here 4 months is our considering fact and you know very well 4 months = 4/12year=1/3year. Thus it's included 1/3year.

Here, the original rate is for 1 year(s); the new rate is for only 4 months i.e. year(s). Please explain this.

1st principal should be calculated for 8 months, not for one year.

The sum 725 rs has certain interest rate R for 1 year not for 8 months, 8months is just a hint for the next part of the question (12-8=4). They could have simply said for the last 4 months the interest is twice the initial rate for an EXTRA SUM 362.5 rs.

In the question, he gives extra 362.5 sum at the 8th month for twice of R, which does not mean initial sum of 725 Rs it's interest rate is only for 8 months or should be calculated for 8 months.