Multiple choice

Passage

Directions: Study the given information and answer the following question. A loan disbursement company offers different loan interest rates based on types of customers. The following table provides the details: Name Type of interest Principal Amount Year Rate (%) Low income group Compound Rs. 10,000 4 Females Simple Rs. 2,95,000 3 Senior citizens Compound Rs. 20,000 2 3 Students Simple 4 Persons with army background Compound 5 2

If the ratio of principal for senior citizens to that for students is 4 : 5, and the rate of interest for students is 110% of that for senior citizens, then how much will be the interest paid by the students?

  1. Rs. 3300

  2. Rs. 3142

  3. Rs. 3201

  4. Rs. 2890

  5. Rs. 2750
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The students' principal is (5/4) × 20,000 = 25,000. Their rate is 110% of 3%, or 3.3%, and for four years under simple interest the interest is 25,000 × 3.3% × 4 = Rs. 3300.

AI explanation

Given the ratio of the principal for senior citizens to students is 4 to 5, and knowing the principal for senior citizens is Rs. 20,000, the principal for students is calculated as (20000 * 5) / 4, which equals Rs. 25,000. The rate of interest for students is 110% of the senior citizen rate of 3%, making the student rate 3.3%. Since the interest type for students in the table is simple, we calculate the interest using the formula S.I. = (P * R * T) / 100, resulting in (25000 * 3.3 * 4) / 100 = Rs. 3300.

Keep practicing — related questions