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.1,112
(b) Rs.1,056
(c) Rs.992
(d) Rs.1,182
The correct answers to the above question in:
Answer: (c)
Using Rule 1,
S.I. = Rs.(920 - 800) = Rs.120
Rate = ${\text"S.I." × 100}/\text" Principal × Time"$
= ${120 × 100}/{800 × 3}$ = 5% per annum
New rate = 8% per annum
S.I. = ${800 × 3 × 8}/100$ = Rs.192
Amount = (800 + 192) = Rs.992
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Read more increase or decrease in interest rate Based Quantitative Aptitude Questions and Answers
Question : 1
If the annual rate of simple interest increases from 10% to 12$1/2$% , a man's yearly income increases by Rs.1250. His principal (in rupees) is
a) 45,000
b) 50,000
c) 65,000
d) 60,000
Answer »Answer: (b)
Using Rule 1,
Change in SI
= $(25/2 - 10)% = 5/2%$
$5/2$% of principal = Rs.1250
Principal = Rs.${1250 × 2 × 100}/5$ = Rs.50000
Question : 2
A sum of Rs. 800 amounts to Rs.920 in 3 years at the simple interest rate. If the rate is increased by 3% p.a., what will be the sum amount to in the same period ?
a) Rs.962
b) Rs.992
c) Rs.982
d) Rs.942
Answer »Answer: (b)
Using Rule 1,
Case I,
S.I. = 920 - 800 = Rs.120
Rate = ${\text"S.I." × 100}/\text" Principal × Time"$
= ${120 × 100}/{800 × 3}$ = 5% per annum
Case II,
Rate = 8% per annum
S.I. = ${800 × 8 × 3}/100$ = Rs.192
Amount = Principal + S.I.
= (800 + 192) = Rs.992
Question : 3
A sum was invested on simple interest at a certain rate for 2 years. Had it been put at 3% higher rate, it would have fetched Rs.72 more. The sum is
a) Rs.1,500
b) Rs.1,200
c) Rs.1,800
d) Rs.1,600
Answer »Answer: (b)
Let the sum = P and original rate = R% per annum.
Then, ${P × (R + 3) × 2}/100 - {P × R × 2}/100 = 72$
${P × 3 × 2}/100 = 72$
P = ${72 × 100}/{3 × 2}$ = Rs.1200
Using Rule 13The difference between the S.I. for a certain sum $P_1$ deposited for time $T_1$ at $R_1$ rate of interest and another sum $P_2$ deposited for time $T_2$ at $R_2$ rate of interest isS.I. = ${P_2R_2T_2 - P_1R_1T_1}/100$
$P_1 = P, R_1 = R, T_1$ = 2
$P_2 = P, R_2 = R + 3, T_2$ = 2
S.I.= 72
72 = ${P × (R + 3) × 2 - P × R × 2}/100$
7200 = 6P
P = Rs.1200
Question : 4
The amount Rs.2,100 became Rs.2,352 in 2 years at simple interest. If the interest rate is decreased by 1%, what is the new interest ?
a) Rs.220
b) Rs.210
c) Rs.252
d) Rs.242
Answer »Answer: (b)
Using Rule 1,
S.I. = 2352 - 2100 = Rs.252
Rate = ${\text"S.I." × 100}/\text" Principal × Time"$
= ${252 × 100}/{2100 × 2}$ = 6% per annum
New rate = 5%
S.I. = ${252 × 5}/6$ = Rs.210
Question : 5
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 : 6
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
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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