Interest Rates | MCQs

Explanation

A man bought a flat for Rs.820,000. He borrowed 55% of this money from a bank. How much money did he borrow from the bank?

Total Amount = 820,000

Bought from Bank = 55%

               = 820,000 x 55/100

                               = 451,000

Explanation

Let the principal be Rs. P. 
According to the question,
∴270.40=P(1+1004​)2 
⇒270.40=P(1+0.04)2
⇒P=1.04×1.04270.40​ = Rs. 250
Hence, the principal is Rs. 250.

Explanation

Investment at 5%: Rs. 4000 x 5% = Rs. 200 per year

Investment at 4%: Rs. 3500 x 4% = Rs. 140 per year

Total income so far: Rs. 200 + Rs. 140 = Rs. 340 per year

Shortfall: Rs. 500 (desired income) - Rs. 340 (current income) = Rs. 160 per year

Amount to invest: Rs. 2500 (remaining amount)

Rate of interest required: (Rs. 160 / Rs. 2500) x 100% ≈ 6.4%

So, the correct answer is: 6.4%

Explanation

Let the sum be Rs. 100. Then, S.I. for first 6 months = Rs. ( 100 X 10 X 1/100 X 2 ) = Rs. 5. S.I. for last 6 months = Rs. ( 105 X 10 X 1/100 X 2 ) = Rs. 5.25. So, amount at the end of 1 year=Rs.(100 + 5 + 5.25) = Rs. 110.25 Effective rate = (110.25 – 100) = 10.25%.

Explanation

To find the interest earned using the simple interest formula, use:

Simple Interest = 𝑃 × 𝑟 × 𝑡

where:

P is the principal amount ($1200),

r is the annual interest rate (5% or 0.05),

t is the time in years (2 years).

Substitute the values into the formula:

Simple Interest=1200×0.05×2

Calculate:

Simple Interest=1200×0.05=60

Simple Interest=60×2=120

Explanation

To calculate the interest, you can use the formula:

Interest = Principal × Rate × Time

In this case:

Principal (P) = Rs. 500

Rate (R) = 11% per annum = 0.11

Time (T) = 4 years

Interest = 500 × 0.11 × 4 = Rs. 220

So, Mr. Ali has to pay back the principal amount of Rs. 500 plus the interest of Rs. 220, making a total of Rs. 720.

The correct answer is: Rs. 220