Two different finance companies declare fixed annual rate of interest on the amounts investewith them by investors. The rate of interest offered by these companies may differ from yearto year depending on the variation in the economy of the country and the banks rate ofinterest. The annual rate of interest offered by the two Companies P and Q over the years isshown by the line graph provided below.
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?
A.Rs 19,000
B.Rs.14, 250
C.Rs.11, 750
D.Rs. 9,500
E.None of these
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?
A.2:3
B. 3:4
C.6:7
D.4:3
E.None of these
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?
A. Rs.9 lakh
B. Rs.11 lakh
C.Rs. 12 lakh
D.Rs.18 lakh
E.None of these
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?
A. Rs. 2, 96,200
B. Rs. 2, 42,200
C. Rs. 2, 25,600
D. Rs. 2, 16,000
E. None of these
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?
A. Rs. 5, 94,550
B. Rs. 5, 80,425
C. Rs. 5, 77,800
D. Rs. 5, 77,500
E. None of these
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.
