type 2 increase or decrease in interest rate Section-Wise Topic Notes With Detailed Explanation And Example Questions
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The following question based on simple interest topic of quantitative aptitude
(a) Rs.7,200
(b) Rs.6,000
(c) Rs.7,000
(d) Rs.6,800
The correct answers to the above question in:
Answer: (c)
Using Rule 1,
Amount deposited in bank = Rs.x (let)
Difference of rates
= 5 - $7/2 = 3/2%$ per annum
S.I. = ${\text"Principal × Time × Rate"/100$
${x × 1 × 3}/{100 × 2}$ = 105
$x = {105 × 200}/3$ = Rs.7000
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Read more increase or decrease in interest rate Based Quantitative Aptitude Questions and Answers
Question : 1
A man loses Rs.55.50 yearly when the annual rate of interest falls from 11.5% to 10%. His capital (in rupees) is
a) 7400
b) 3700
c) 11100
d) 8325
Answer »Answer: (b)
Using Rule 1,
Let his capital be x.
According to the question,
${x × 11.5}/100 - {x × 10}/100$ = 55.50
or (11.5 - 10)x = 5550
or 1.5x = 5550
or $x = 5550/{1.5}$ = Rs.3700
Question : 2
A sum of Rs.2,400 amounts to Rs.3,264 in 4 years at a certain rate of simple interest. If the rate of interest is increased by 1%, the same sum in the same time would amount to
a) Rs.3,312
b) Rs.3,288
c) Rs.3,360
d) Rs.3,340
Answer »Answer: (c)
Using Rule 1Simple Interest (S.I.)= ${\text"Principal × Rate × Time"/100$ orS.I. = ${\text"P × R × T"/100$P = ${\text"S.I." × 100}/\text"R × T"$, R = ${\text"S.I." × 100}/\text"P × T"$, T = ${\text"S.I." × 100}/\text"P × R"$ A = P + S.I. or S.I. = A - P
S.I. = 3264 - 2400 = Rs.864
Rate = ${\text"S.I." × 100}/\text" Principal × Time"$
= ${864 × 100}/{2400 × 4}$ = 9% per annum
New rate = 10% per annum
S.I. = ${2400 × 10 × 4}/100$ = Rs.960
Amount = 2400 + 960 = Rs.3360
Question : 3
A sum of money was lent at simple interest at a certain rate for 3 years. Had it been lent at 2.5% per annum higher rate, it would have fetched Rs.540 more. The money lent was :
a) Rs.6472
b) Rs.6400
c) Rs.7200
d) Rs.6840
Answer »Answer: (c)
If the sum lent be Rs. x, then
${x × 2.5 × 3}/100 = 540$
$x = {540 × 100}/{2.5 × 3}$ = Rs.7200
Using Rule 13,
$P_1 = P, R_1 = R, T_1$ = 3
$P_2 = P, R_2 = R + 2.5%, T_2$ = 3
S.I. = Rs.540
540 = ${P × (R + 2.5%) × 3 - P × R × 3}/100$
54000 = 7.5P
P = $540000/75$
P = Rs.7200
Question : 4
A sum of Rs.400 amounts to Rs.480 in 4 years. What will it amount to if the rate of interest is increased by 2%?
a) Rs.560
b) Rs.484
c) None of these
d) Rs.512
Answer »Answer: (d)
Using Rule 1Simple Interest (S.I.)= ${\text"Principal × Rate × Time"/100$ orS.I. = ${\text"P × R × T"/100$P = ${\text"S.I." × 100}/\text"R × T"$, R = ${\text"S.I." × 100}/\text"P × T"$, T = ${\text"S.I." × 100}/\text"P × R"$ A = P + S.I. or S.I. = A - P
Interest = Rs.(480–400) = Rs.80
80 = ${400 × r × 4}/100$ ⇒ r = 5
Now, r = 7% (2% increase)
S.I. = ${400 × 7 × 4}/100$ = 112
Amount = Rs.(400+112) = Rs.512
Question : 5
A sum of Rs. 800 becomes Rs. 956 in 3 years at a certain rate of simple interest. If the rate of interest is increased by 4%, what amount will the same sum become in 3 years ?
a) RS. 1042
b) Rs. 1025
c) Rs. 1024
d) Rs. 1052
Answer »Answer: (d)
Using Rule 1,
S.I. = 956 - 800 = Rs. 156
Rate = ${\text"S.I." × 100}/\text" Principal × Time"$
= ${156 × 100}/{800 × 3}$ = 6.5%
New rate = (6.5 + 4)% = 10.5%
S.I. = ${\text"Principal × Time × Rate"/100$
= ${800 × 3 × 10.5}/100$ = Rs. 252
Amount = Rs.(800 + 252) = Rs.1052
Question : 6
A sum of money was invested at a certain rate of simple interest for 2 years . Had it been invested at 1% higher rate, it would have fetched Rs.24 more interest. The sum of money is :
a) Rs.1050
b) Rs.1200
c) Rs.9600
d) Rs.1000
Answer »Answer: (b)
${P × 1 × 2}/100 = 24$
P = $2400/2$ = Rs.1200
Using Rule 13,
$P_1 = P, R_1 = R, T_1$ = 2.
$P_2 = P, R_2 = R + 1, T_2$ = 2
S.I.= Rs. 24
24 = ${P(R +1)2 - PR2}/100$
2400 = 2PR + 2P - 2PR
P = Rs.1200
simple interest Shortcuts and Techniques with Examples
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type 1 basic simple interest using formula
Defination & Shortcuts … -
type 2 increase or decrease in interest rate
Defination & Shortcuts … -
type 3 money multiples in ‘n’ years
Defination & Shortcuts … -
type 4 difference & equality of si rate & years
Defination & Shortcuts … -
type 5 si on ‘n’ years & ‘x/y ‘of sum
Defination & Shortcuts … -
type 6 si with ratios
Defination & Shortcuts …
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