Aptitude - Simple Interest - Discussion

Each of the questions given below consists of a statement and / or a question and two statements numbered I and II given below it. You have to decide whether the data provided in the statement(s) is / are sufficient to answer the given question. Read the both statements and

  • Give answer (A) if the data in Statement I alone are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question.
  • Give answer (B) if the data in Statement II alone are sufficient to answer the question, while the data in Statement I alone are not sufficient to answer the question.
  • Give answer (C) if the data either in Statement I or in Statement II alone are sufficient to answer the question.
  • Give answer (D) if the data even in both Statements I and II together are not sufficient to answer the question.
  • Give answer(E) if the data in both Statements I and II together are necessary to answer the question.

3. 

What percentage of simple interest per annum did Anand pay to Deepak?

I. 

Anand borrowed Rs. 8000 from Deepak for four years.

 II. 

Anand returned Rs. 8800 to Deepak at the end of two years and settled the loan.

[A]. I alone sufficient while II alone not sufficient to answer
[B]. II alone sufficient while I alone not sufficient to answer
[C]. Either I or II alone sufficient to answer
[D]. Both I and II are not sufficient to answer
[E]. Both I and II are necessary to answer

Answer: Option E

Explanation:

Let the rate be R% p.a.

I gives, P = Rs. 8000 and T = 4 years.

II gives, S.I. = Rs. (8800 - 8000) = Rs. 800.

R = 100 x S.I. = 100 x 800 % = 2 1 % p.a.
P x T 8000 x 4 2

Thus, I and II both are needed to get the answer.

Correct answer is (E).


Deepak Kumar said: (Jun 28, 2011)  
But 800 as interest is given only in two years.

Lokesh Jain said: (Sep 8, 2011)  
I think He should pay less as he has paid earlier than four years.

Pradeep said: (Feb 25, 2012)  
Conceptually, he has to pay interest for only two years, why he is paying 4 years.

Rakesh said: (Nov 28, 2013)  
8800 is amount under SI paid in 2 years but you taken it as 4 years.

Nikhil said: (Jan 21, 2014)  
Answer is E correct. only % should be 5%. No matter how many year we want. They told to find out S.I % which is 5%. They wrongly type 4yr instead of 2yr.

If he pay Rs.800 for 2yr then for 1yr Rs.400

Solution will be like that,

800 = 8000*2*R/100.

800*100/2*100.

= 5%.

Bharath said: (Jan 14, 2015)  
If you look the 2 option, we will get the PTR details. So why again 1 option is needed?

Sparsh Chandra said: (Mar 20, 2015)  
Question is all correctly solved. He settled the loan in 2 years which he took for four years so the rate of interest is asked for whole four years.

Thus this sum 8800 be taken as the sum he could have given at the end of 4 years. So interest Rs. 800 time 4 years and Principal Rs. 8000.

So rate of interest applicable will be 2.5% (after solving P*R*T/100 = SI), irrespective of the time he settled the loan. That is given to create a confusion. Rate of interest asked is applicable rat not the rate at which he repaid loan.

Hope its clear now.

Sangeeta Kumari said: (Feb 25, 2016)  
If someone is settling down the loan in less time, how rate of interest could be same, rate of interest should be increased to make the settlement before time i.e. in two years instead of four years.

Maha said: (Jun 17, 2017)  
He has taken money for four years but he return money in two years then rate interest will be 5%.

Harsh said: (May 1, 2018)  
Right @Nikhil.

My answer is also 5%.

Jeet said: (Nov 4, 2018)  
@Sparsh Chandra.

You are right. Thanks for making me understand this question.

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