Solutions for QAHO1002105

Solutions for questions 1 to 20: 9. From the given data, the compound interest on `75,000 at
10% p.a. is `7,500. For two years, it is 15,000 + 10% of 7,500
1. The sum = `36,000 and interest = `15,120. = `15,750. This implies that the amount at the end of two
, . years is `90,750. Now 10% of this = `9075. Hence, the total
Using SI = , we’ve 15,120 =
interest for three years is `24,825.
⇒ R = 12 Hence, the value of t = 3 Ans: (3)
Hence, the rate of interest is 12% p.a. Ans : (12)
10. Let the principal and the rate of interest be P and
2. The effective rate of interest is 9.5 x 2 + 12 x 3 + 14 x 2 + 16 r respectively.
x 0.5 i.e. 91% p.a.
Given that, P(1 + )3 = 1,25,000 ––––– (1) and
Given that, 91% of the principal = 1,36,500
⇒ Principal = `1,50,000. Ans : (`1,50,000) P(1 + )5 = 1,95,312.5 ––––– (2)

3. Let the sum be P and the rate of interest be r. (2) / (1) ⇒ (1 + )2 =1.5625 ⇒ (1 + ) = 5/4
Given that, P(1+ ) = 25,200 ––––––– (1) ⇒ r = 25
Substituting, r in (1), we’ve P = `64,000. Ans : (64,000)
and, P(1+ ) = 30,600 ––––––– (2)
Solving (1) and (2), 11. Given that the compound interest for the third and fourth
we get P = `18,000 and r = 10% p.a years is `11,520 and `13,824 respectively.
Ans : (`18000, 10%) The difference between them will be equal to `2,304 which
in turn is equal to r% of 11,520.
4. Let the sum lent by Anirudh to Sadanand be x. Then the sum Hence, r = 2,304 x 100 /11,520 = 20% p.a.
lent to Sivanand will be (45000–x). Ans : (20)
× × ( , )× ×
Given that, += = 12,300
12. The given sum = `32,000. At the rate of 20% p.a., it amounts
⇒ 24x + 13,50,000 – 30x = 12,30,000 to `38,400 at the end of first year.
⇒ x = 20,000. Now `38,400 at the rate of 15% p.a., amounts to `44,160 at
Hence, the amount lent to Sivanand will be `25,000. the end of the second year.
Ans : (`25,000) Now `44,160 at the rate of 10% p.a., amounts to `48,576 at
the end of the third year.
5. Let the sum be `P. It becomes `7P in 24 years. This implies Hence, the interest earned by Swetha = `16,576.
that interest is `6P. Ans : (`16,576)
Using SI = , 6P = 13. Let the sum be P. It becomes 3P in 16 years.
⇒ R = 25% Sixteen years further, it becomes 9P. In another 16 years it
Let the sum become 9P in T years. Then, the interest is 8P. becomes 27P. Hence in 48 years it becomes 27P.
Ans : (48)
Then, 8P =
⇒ T = 32 years. Ans : (32) 14. Given that the sum borrowed is `75,000 for two years at 16%
p.a. It becomes 75,000 (1.16) i.e. `87,000 after one year
6. Let the sum be `P. It becomes `3P in 16 years. This implies assume Anmol paid an amount of `x at the end of the
that the interest is `2P. first year. This implies that, 87,000–x is the principal for the
second year.
Using SI = , 2P = ⇒ (87,000 – x) 1.16 = 46,400
⇒ R = 12.5% p.a. ⇒ 87,000 – x = 40,000.
Let the sum become 5P in T years at 12.5 + 3.5 i.e. 16% p.a., Hence, the amount repaid by Anmol at the end of the
Then, the interest is 4P. first year is `47,000. Ans : (`47,000)
Then, 4P =
15. Given that interest is compounded half–yearly. Here we’ve
⇒ T = 25 years. Ans : (25) P = `30,000; R = 24% p.a. and n = 1 year
Using, P [(1+ )2n – 1], we can find the interest.
7. Let the sums of money lent to A, B and C be a, b and c
respectively. Hence, the required interest
Given that, a x 12 x 5 : b x 15 x 4 : c x 20 x 3 = 2 : 3 : 5 = 30,000 [(1+ )2 – 1] = i.e. `7,632
This implies that, a : b : c = 2 : 3 : 5.
Given that, 2k + 2k x 3/5 + 3k + 3k x 3/5 + 5k + 5k x 3/5 Ans : (`7,632)
= 16k = 76,800
⇒ k = 4800 16. Given that the interest is compounded every 4 months.
Hence the total sum lent to A, B and C is `48,000 As there are three 4–month periods, consider the rate of
Ans : (48,000) interest as 1/3(18), i.e. 6% per quarter.
Let the sum be `1,000. Then, the amount at the end of the
8. The compound interest on a sum of `P at r% p.a. for n years first 4–months is `1,060. On this, interest for the next
4 months at the rate of 6% is `63.6. Hence, it becomes
is given by P [(1 + )n – 1] `1,123.6. Again on this, interest for the last 4 months at the
rate of 6% is `67.416.
Then the required interest is 50,000 [(1 + )4 – 1] Hence, the total interest on `1,000 at the given rate is
i.e. `53,680. Ans : (53,680) `191.016 which is effectively 19.1016% p.a.
Ans : (19.1016%)
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17. The difference between SI and CI for two years on a sum of 19. Let the equal annual instalment be `100. This at the rate of
`P at r% p.a. for two years is given as P(r/100)2. Let the sum 14% p.a., clears a future debt of `484, due at the end of
be `P. 4 years.
Then, P(15/100)2 = 360 [142 + 128 + 114 + 100 i.e. 484]
⇒ P = 16,000 Ans : (`16,000) Hence, to clear a debt of `9,680, the annual instalment
,
should be = `2,000 Ans : (2,000)
18. The difference between SI and CI for two years on a sum of
`P at r% p.a. for two years is equal to r% of SI for the first
year. Here, the difference between SI and CI is 108. 20. Let the value of each instalment be `x.
Then, we have [7,500(1.2) – x](1.2) = x
This implies that, = 108 ⇒ r = 200/7 ⇒ x = 10,800/2.2
⇒ x = 4,909.09
Using, SI = , we’ve 756 = SI Hence, an annual instalment of `4,909.09 will clear the debt.
Ans : (`4,909.09)
= ⇒ P = 1323 Ans : (`1,323, 200/7%)

ADDITIONAL QUESTIONS FOR PRACTICE

Solutions for questions 1 to 10: 6. Let the amounts invested in A, B and C be 4k, 7k and 8k
respectively.
1. Given,
4k × 12 × 2  4   2 
+ 7k1+ 10  −1 + 8k1+ 15  – 1 = 67,887
Rate of Time 100  100   100 
Person Sum    
Interest Period
⇒ 0.96k + 7k(0.4641) + 8k(0.3225) = `67,887
Rahul p r% 4 years ⇒ 6.7887k = 67,887
3 ⇒ k = `10,000.
Bala 2p 4
r% 4 years Required amount invested in C = 8 × 10000 = `80,000.
Ans : (`80,000)
3
Given, 4(r% of p + r% of 2p) = 7000 7. Diffeence between SI and CI for 2 years
4 ,
∴ r% of p = 700. = = r% (SI on one year) = r%
∴ Required answer ∴ 19,350 – 18,000 = 1350 = r% (9,000)
3 3 1350
=` r% of 2p = ` × r% of p = `1,050 ∴ r% = ⇒r= = 15%
4 2
Ans : (`1,050) 15%P = 9000
2. Let the investments of Kunal in two schemes be 2k and 3k. ,
∴P= ⇒ P = 60,000
[(2k × 14 × 3) ÷ 100] + [(3k × 17 × 4) ÷ 200] .
= 4650 Rate of interest is 5 percent points more ⇒ 20%
⇒ k = 2500.
∴ Total amount invested by Kunal (CI – SI) for 2 years = 60,000 × = 2400
= 5k = 5 × 2500 = `12,500. Ans : (`12,500) Ans : (`2,400)
3. Let the amount lent to Ananth be x, then amount lent to 8. Amount to be repaid at the end of first year = 300000 × 1.2
Ananth’s is 60,000 – x = `3,60,000
Given that, As he repaid `1,20,000, the balance `2,40,000 will be the
( )× × , × . × principal for second year.
x (1.1) − 1 + −
∴ Amount to be paid at the end of second year
= 4564 = 2,40,000 × 1.2 i.e., `2,88,000.
Hence the amount lent to Anath is ₹20,000. Ans : (`2,88,000)
Ans : (`20,000)
9. The amount that Akul should repay
4. Given, =

6
 4 
6300 × X × 4  ` 50 ,000  1 +  
= 0.21 × 7200 ⇒ X = 6.   100  
100
= `63,265.9. Ans : (`63,265.9)
Required interest = 9,000 1+ −1 = ₹4687.875.
10. Let `400p and `500p be the investments in scheme A and
Ans : (`4687.875) scheme B respectively.
∴ Interests accrued in 2 years
y × 10 × 5
5. Let the amount invested on simple interest be `y. from scheme A = `400p × 2× 12 = `96p
100 100
= (8883 – y) [(1 + 15 )2 – 1] from scheme B = `500p × ((1.15)2 – 1)
100 = 500p(0.3225)
0.5y = (8883 – y)(1.152 – 1) = 161.25p
0.5y = (8883 – y)(0.3225) Given, (161.25p – 96p) = 6525
0.8225y = 2864.7675 ∴ 65.25p = 6525
∴ y = 3483 ⇒ p = 100
∴ Amount invested in scheme A = (8883 – 3483) = `5,400. ∴ 500p = 50,000. Ans : (`50,000)
Ans : (`5,400)

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