**Question(1-5) :-**

**Annual Rate of Interest Offered by Two Finance Companies Over the Years.**

**Q1.A sum of Rs. 4.75 lakhs was invested in Company Q in 1999 for one year. How much more interest would have been earned if the sum was invested in Company P?**

**Q2.If two different amounts in the ratio 8:9 are invested in Companies P and Q respectively in 2002, then the amounts received after one year as interests from Companies P and Q are respectively in the ratio?**

**Q3.In 2000, a part of Rs. 30 lakhs was invested in Company P and the rest was invested in Company Q for one year. The total interest received was Rs. 2.43 lakhs. What was the amount invested in Company P?**

**Q4.An investor invested a sum of Rs. 12 lakhs in Company P in 1998. The total amount received after one year was re-invested in the same Company for one more year. The totalappreciation received by the investor on his investment was?**

**Q5.An investor invested Rs. 5 lakhs in Company Q in 1996. After one year, the entire amount along with the interest was transferred as investment to Company P in 1997 for one year. What amount will be received from Company P, by the investor?**

Answer & Explanation

**1.(D)**

DIFFERENCE = Rs. [(10% of 4.75) – (8% of 4.75)]
= Rs. (2% of 4.75) lakhs

= Rs. 0.095 lakhs

= Rs. 9500.

**2.(D)**

Let the amounts invested in 2002 in Companies P and Q be Rs. 8x and Rs. 9xrespectively.

Then, interest received after one year from Company P= Rs. (6% of 8x)

=Rs.48x/100

and interest received after one year from Company Q= Rs. (4% of 9x)

=Rs.36x/100

Required ratio =(48x/100)/(36x/100)=4/3

**3.(D)**

Let Rs. x lakhs be invested in Company P in 2000, the amount invested in Company Q in

2000 = Rs. (30 – x) lakhs.

Total interest received from the two Companies after 1 year

= Rs. [(7.5% of x) + {9% of (30 – x)}] lakhs

= Rs. {2.7 -(1.5x/100)}lakhs.

2.7 -1.5x/100= 2.43

x = 18.

**4.(C)**

Amount received from Company P after one year (i.e., in 199) on investing Rs. 12 lakhs in it

= Rs. [12 + (8% of 12)] lakhs

= Rs. 12.96 lakhs.

Appreciation received on investment during the period of two years

= Rs. (14.256 – 12) lakhs

= Rs. 2.256 lakhs = Rs. 2, 25,600.

**5.(B)**

Amount received from Company Q after one year on investment of Rs. 5 lakhs in the year1996

= Rs. [5 + (6.5% of 5)] lakhs

= Rs. 5.325 lakhs.

Amount received from Company P after one year on investment of Rs. 5.325 lakhs in theyear 1997

= Rs. [5.325 + (9% of 5.325)] lakhs

= Rs. 5.80425 lakhs

= Rs. 5, 80, 425.