This EduRev document offers 10 Multiple Choice Questions (MCQs) from the topic Number System (Level - 2). These questions are of Level - 2 difficulty and will assist you in the preparation of CAT & other MBA exams. You can practice/attempt these CAT Multiple Choice Questions (MCQs) and check the explanations for a better understanding of the topic.
Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:A borrowed Rs. 20,000 from B, at 10% p.a. compound interest. After 1 year, again A borrowed Rs. 10,000 from B at the same rate. Exactly after 1 more year, A won a lottery and wanted to repay the debt. How much would he have to pay to B?
Explanation
Total money pay by A to B(after end of the 2 year) = 20,000 + 10,000 (1 + 10/100) = 24,200 + 11,000 = Rs. 35,200
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:A father left a will that his capital of Rs. 18,750 should be divided between his two sons aged 12 years and 14 years, respectively, when they attain maturity at the age of 18 years. The amount received by each at 5% simple interest would be the same. Find the sum allotted to the elder son.
Explanation
Let the amount be Rs. x and Rs. y for the younger and elder son, respectively.
x + y = Rs. 18,750 ... (I)
Applying simple interest :
x (1 + 6 × 5/100) = y (1 + 4 × 5/100) [ We know: S.I = (P×R×T)/100]
x/12 = y/13 = 750
x = Rs. 9,000
y = Rs. 9,750
Hence, amount allotted to elder son = Rs. 9,750
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:A sum becomes 8 times its original amount in 3 years, compounded annually at a certain rate. Find the rate of interest.
Explanation
Let principle be P, amount be 8P and time(t) be 3 years compounded annually.
r = 100%
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:A sum of money becomes 6 times at 6.25% rate of simple interest. Find the rate at which it becomes 11 times.
Explanation
At 6.25%, money becomes 6 times. i.e; SI = 6 - 1 = 5 times.
SI and rate have inverse relation.
So, (11 - 1)/r = (6 - 1)/6.25;
r = {10 x (6.25/5)}%
= 12.5%
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:Certain sum gets doubled in 2 years at compound interest. What is the minimum number of years required in which the sum should become at least 7 times?
Explanation
Let principal = P, rate = r and time = n
⇒ 2n/2 ≥ 7
If n = 5, 25/2 < 7
If n = 6, 23 > 7
So, minimum 6 years are required.
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:Anjali is saving Rs. 1000 every month in a bank, where they pay 10% simple interest. How much amount will she get after 1 year?
Explanation
Simple interest after 1 month = (1000 × 10 × 1)/(100 × 12)
Simple interest after 2 months = (1000 × 10 × 2)/(100 × 12)
Simple interest after 3 months = (1000 × 10 × 3)/(100 × 12)
Similarly, simple interest after 12 months = (1000 × 10 × 12)/(100 × 12)
Required amount = 1000 × 12 + 1000 ×
= Rs. 12650
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself: borrowed Rs. 5000 at a rate r1 simple interest. B borrowed Rs. 6000 at a rate r2 simple interest. After 5 years, both the amounts were exactly equal, what is r1/r2?
Explanation
5000
5 + 25 r1/100 = 6 + 30r2/100
So, we cannot find r1/r2 from this.
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:On a sum of Rs. 1000, the compound interest for 2 years is twice the simple interest for 2 years at 11%. Find the rate at which the interest is compounded annually.
Explanation
SI at 11% for 2 years on a sum of Rs. 1000 = Rs. 220.
Let the rate at which the interest is compounded annually be R.
Since CI is twice the SI,
⇒ R = 20%
Required rate = 20%
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:Richa borrowed a certain amount from Priya at a rate of 10% compounded annually. She paid Rs. 11,000 at the end of the 1st year and Rs. 60,500 at the end of the second year and cleared the loan. What was the amount borrowed by Richa from Priya?
Explanation
Amount = Principal
The present value of Rs. 11,000, which is paid after 1 year, is
The present value of Rs. 60,500, which is paid after 2 years, is
So, borrowed amount = 10,000 + 50,000 = Rs. 60,000
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Question for Practice Questions Level 2: Simple & Compound Interest - 1
Try yourself:If the difference between compound interest and simple interest on a certain amount at 7% per annum for two years is Rs. 7.35, then find the principal amount.
Explanation
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