What is the initial rate of interest per annum ?
For the next two (02) items that follow : A person borrows a sum of ₹16,000 on simple interest at the beginning of a year. After 4 months, ₹24,000 more is borrowed at a rate of interest double the previous one. At the end of the year, the total interest on both the loans is ₹4800.
- A. 8%
- B. 10% ✓
- C. 12%
- D. 16%
Correct Answer: B. 10%
Explanation
Let initial rate be r. The ₹16,000 is borrowed for 12 months, interest = 16000 \times r \times 1 = 16000r. The ₹24,000 is borrowed for 8 months at 2r, interest = 24000 \times 2r \times (8/12) = 32000r. Total interest = 16000r + 32000r = 48000r = 4800. Thus r = 4800 / 48000 = 0.10 or 10%.
Related questions on Arithmetic
- What is the remainder when (17^{25} + 19^{25}) is divided by 18?
- A bottle contains spirit and water in the ratio 1:4 and another identical bottle contains spirit and water in the ratio 4:1. In what rat...
- Let P = 5^5 \times 15^{15} \times 25^{25} \times 35^{35} and Q = 10^{10} \times 20^{20} \times 30^{30} \times 40^{40}. What is the numbe...
- Two students X and Y appeared in a test. The score of X is 20 more than that of Y. If the score of X is 75% of the sum of the scores of X an...
- Question: The product of a natural number N and the number M written by the same digits of N in the reverse order is 252. What is the number...