model 3 combination of si & ci Section-Wise Topic Notes With Detailed Explanation And Example Questions

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The following question based on compound interest topic of quantitative aptitude

Questions : The compound interest on a certain sum of money for 2 years at 5% per annum is Rs.410. The simple interest on the same sum at the same rate and for the same time is

(a) Rs.405

(b) Rs.400

(c) Rs.350

(d) Rs.300

The correct answers to the above question in:

Answer: (b)

Compound interest = P $[(1 + R/100)^T - 1]$

410 = P$[(1 + 5/100)^2 - 1]$

410 = P$[(1 + 1/20)^2 - 1]$

410 = P$[(21/20)^2 - 1]$

410 = P$(441/400 - 1)$

410 = P$(41/400)$

P = ${410 × 400}/41$ = Rs.4000

S.I. = $\text"Principal × Time × Rate"/100$

= ${4000 × 2 × 5}/100$ = Rs.400

Using Rule 10,

Here, C.I. = Rs.410, R = 5%, S.I. = ?

C.I. = S.I.$(1 + R/200)$

410 = S.I.$(1 + 5/200)$

410 = S.I.$(205/200)$

S.I. = ${410 × 200}/205$ = Rs.400

Practice compound interest (model 3 combination of si & ci) Online Quiz

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Read more combination of si and ci Based Quantitative Aptitude Questions and Answers

Question : 1

If the compound interest on a certain sum for two years at 12% per annum is Rs.2,544, the simple interest on it at the same rate for 2 years will be

a) Rs.2,440

b) Rs.2,400

c) Rs.2,480

d) Rs.2,500

Answer: (b)

C.I. = P$[(1 + R/100)^T - 1]$

2544 = P$[(1 + 12/100)^2 - 1]$

2544 = P$[(28/25)^2 - 1]$

2544 = P$(784/625 - 1)$

2544 = P$({784 - 625}/625)$

2544 = ${P × 159}/625$

P = ${2544 × 625}/159$ = Rs.10000

S.I. = ${P × R × T}/100$

= ${10000 × 2 × 12}/100$ = Rs.2400

Using Rule 10,

Here, C.I. = Rs.2544, R = 12%, S.I. = ?

C.I. = S.I.$(1 + R/200)$

2544 = S.I.$(1 + 12/200)$

2544 = S.I.$(212/200)$

S.I. = ${2544 × 200}/212$ = Rs.2400

Question : 2

A man borrowed some money from a private organisation at 5% simple interest per annum. He lended 50% of this money to another person at 10% compound interest per annum and thereby the man made a profit of Rs.3,205 in 4 years. The man borrowed.

a) Rs.1,50,000

b) Rs.80,000

c) Rs.1,20,000

d) Rs.1,00,000

Answer: (d)

Using Rule 1,

Sum borrowed = Rs.x

Simple interest after 4 years

= ${x × 4 × 5}/100$ = Rs.$x/5$

Amount lent of on compound interest = Rs.$x/2$

C.I. = P$[(1 + R/100)^T - 1]$

= $x/2[(1 + 10/100)^4 - 1]$

= $x/2[(1.1)^4 - 1]$

= $x/2$ (1.4641 - 1) = Rs.${0.4641x}/2$

${0.4641x}/2 - x/5$ = 3205

${2.3205x - 2x}/10$ = 3205

0.3205x = 32050

$x = 32050/{0.3205}$ = Rs.100000

Question : 3

The simple interest on a sum of money at 4% per annum for 2 years is Rs.80. The compound interest in the same sum for the same period is

a) Rs.81.60

b) Rs.82.60

c) Rs.81.80

d) Rs.82.20

Answer: (a)

Principal = $\text"S.I. × 100"/ \text"Time × Rate"$

= ${80 × 100}/{2 × 4}$ = Rs.1000

C.I. = P$[(1 + R/100)^T - 1]$

= 1000$[(1 + 4/100)^2 - 1]$

= 1000$[(25/26)^2 - 1]$

= 1000$(676/625 - 1)$

= 1000$({676 - 625}/625)$

= ${1000 × 51}/625$= Rs.81.60

Using Rule 10,

Here, S.I. = Rs.80, R = 4%, C.I. = ?

C.I.= S.I.$(1 + R/200)$

C.I.= 80$(1 + 4/200)$

= $80(1 + 1/50)$

= 80 × $51/50$ = Rs.81.60

Question : 4

A man borrowed some money from a private organisation at 5% simple interest per annum. He lended this money to another person at 10% compound interest per annum, and made a profit of Rs.26,410 in 4 years. The man borrowed

a) Rs.100000

b) Rs.200000

c) Rs.132050

d) Rs.150000

Answer: (a)

Let the principal be Rs.P. For 4 years,

S.I. = $\text"Principal × Time × Rate"/100$

= ${P × 4 × 5}/100$ = Rs.$P/5$

C.I. = P$[(1 + R/100)^T - 1]$

= P$[(1 + 10/100)^4 - 1]$

= P$[(11/10)^4 - 1]$

= P$(14641/10000 - 1) = {4641P}/10000$

According to the question,

${4641P}/10000 - P/5$ = 26410

${4641P - 2000P}/10000$ = 2641

${2641P}/10000$ = 2641

P = Rs.10000

Question : 5

Compound interest on a sum of money for 2 years at 4 per cent per annum is Rs.2,448. Simple interest of the same sum of money at the same rate of interest for 2 years will be

a) Rs.2,250

b) Rs.2,500

c) Rs.2,360

d) Rs.2,400

Answer: (d)

C.I.= P$(1 + r/100)^t$ - P

2448 = P$[(1 + r/100)^t - 1]$

or 2448 = P$[(1 + 4/100)^2 - 1]$

2448 = P$[676/625 - 1]$

2448 = P$[51/625]$

P = ${2448 × 625}/51$ = Rs.30,000

S.I. = ${30000 × 4 × 2}/100$ = Rs.2400

Using Rule 10,

Here, C.I. = Rs.2448, R = 4%, S.I. = ?

C.I.= S.I.$(1 + R/200)$

2448 = S.I.$(1 + 4/200)$

2448 = S.I.$(1 + 1/50)$

2448 = S.I.$(51/50)$

S.I. = ${2448 × 50}/51$ = Rs.2400

Question : 6

The simple interest and compound interest (compounded annually) on a certain sum of money with a given rate for a period of 2 years are Rs.900 and Rs.954 respectively. The sum of money is

a) Rs.3750

b) Rs.3700

c) Rs.3850

d) Rs.3650

Answer: (a)

Difference of CI and SI for two years

= Rs.(954 - 900) = Rs.54

Sum= Difference in CI and SI × $(100/{Rate})^2$

Rate = ${2 × \text"Difference" × 100}/\text"Simple interest"$

= ${2 × 5400}/900 = 12%$

Sum = 54 × $(100/12)^2$

= $54 × 25/3 × 25/3$ = Rs.3750

Using Rule 10,

C.I. = Rs.954, S.I.=Rs.900, P=?

C.I.= S.I.$(1 + R/200)$

954 = 900$(1 + R/200)$

$954/900 = 1 + R/200$

$954/900 - 1 = R/200$

${954 - 900}/900 = R/200$

$54/9 = R/2$

R = 12%

Now S.I. = ${P × R × T}/100$

900 = ${P × 12 × 2}/100$

P = Rs.3750

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