Simple and Compound Interest Questions

Multiple choice
  1. Rs. $4,000$
  2. Rs. $5,000$
  3. Rs. $3,937.50$
  4. Rs. $2,625$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Investment ratio = 12500 : 8500 = 25 : 17. 60% of profit is divided equally (30% each). Remaining 40% is divided in ratio 25:17. Partner 1 share = 0.3P + (25/42)*0.4P. Partner 2 share = 0.3P + (17/42)*0.4P. Difference = (8/42)*0.4P = 300. (8/42)*0.4P = 300 => (3.2/42)P = 300 => P = 300 * 42 / 3.2 = 3937.5.

Multiple choice
  1. $5$%
  2. $4.8$%
  3. $5.2$%
  4. $4.6$%
  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let x be the amount at 4% and y be the amount at 6%. 0.04x = 0.06y. x + y = 4500. 0.04x = 0.06(4500-x) => 0.1x = 270 => x = 2700. y = 1800. Interest = 0.04(2700) + 0.06(1800) = 108 + 108 = 216. Average rate = 216 / 4500 = 0.048 = 4.8%.