[10.25%] A financier claims to be lending money at simple interest, But he includes the interest every six mo

For Competitive Exams

A financier claims to be lending money at simple interest, But he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes.

10.25%

10%

9.25%

Explanation:

Let the sum is 100.
As financier includes interest every six months., then we will calculate SI for 6 months, then again for six months as below:
SI for first Six Months = (100*10*1)/(100*2) = Rs. 5
Important: now sum will become 100+5 = 105
SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25
So amount at the end of year will be (100+5+5.25)
= 110.25
Effective rate = 110.25 - 100 = 10.25

Additional Questions

A sum of money amounts to Rs 9800 after 5 years and Rs 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is	Answer
Albert invested amount of 8000 in a fixed deposit for 2 years at compound interest rate of 5 % per annum. How much Albert will get on the maturity of the fixed deposit.	Answer
A plot is sold for Rs. 18,700 with a loss of 15%. At what price it should be sold to get profit of 15%.	Answer
A man gains 20% by selling an article for a certain price. If he sells it at double the price, the percentage of profit will be.	Answer
The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25% then determine the value of x.	Answer
In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit	Answer
A man bought an article and sold it at a gain of 5 %. If he had bought it at 5% less and sold it for Re 1 less, he would have made a profit of 10%. The C.P. of the article was	Answer
A fruit seller sells mangoes at the rate of Rs.9 per kg and thereby loses 20%. At what price per kg, he should have sold them to make a profit of 5%	Answer
A shopkeeper sold an article for Rs 2564.36. Approximately what was his profit percent if the cost price of the article was Rs 2400	Answer
A and B can together finish a work 30 days. They worked together for 20 days and then B left. After another 20 days, A finished the remaining work. In how many days A alone can finish the work?	Answer

Share with Friends