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- Question
Car is purchased on hire-purchase. The cash price is $21 000 and the terms are a deposit of 10% of the price, then the balance to be paid off over 60 equal monthly instalments. Interest is charged at 12% p.a. What is the total cost of the car?
Options- A. 30.240
- B. 31.240
- C. 33.240
- D. 32,240
- Correct Answer
- 32,240
ExplanationTotal cost = deposit + instalment amount × number of instalments
- 1. Jaclyn buys $50 000 worth of debentures in a company. She earns 9.5% p.a. simple interest, paid to her quarterly (that is, every 3 months). If the agreed period of the debenture was 18 months: calculate the total amount collected at the end of the term.
Options- A. 8125
- B. 9125
- C. 7125
- D. 6125 Discuss
- 2. At the beginning of March, Ryan had $621 in his savings bank account. On 10 March he deposited $60. If the bank pays 8% p.a. interest paid monthly and calculated on the minimum monthly balance, calculate the interest Ryan earns in March.
Options- A. 2.14
- B. 3.14
- C. 5.14
- D. 4.14 Discuss
- 3. What is the rate of simple interest? I. The total interest earned was Rs. 4000. II. The sum was invested for 4 years.
Options- A. I alone sufficient while II alone not sufficient to answer
- B. II alone sufficient while I alone not sufficient to answer
- C. Either I or II alone sufficient to answer
- D. Both I and II are not sufficient to answer Discuss
- 4. What percentage of simple interest per annum did Anand pay to Deepak? I. Anand borrowed Rs. 8000 from Deepak for four years. II. Anand returned Rs. 8800 to Deepak at the end of two years and settled the loan
Options- A. I alone sufficient while II alone not sufficient to answer
- B. II alone sufficient while I alone not sufficient to answer
- C. Either I or II alone sufficient to answer
- D. Both I and II are necessary to answer Discuss
- 5. Find: S.l on Rs 68000 at 1623 1 % per annum for 9 months
Options- A. 6500
- B. 7500
- C. 8500
- D. 9500 Discuss
- 6. Jason decides to borrow money for a holiday. If a personal loan is taken over 4 years with equal quarterly repayments at 12% p.a. flat rate (simple interest), calculate the effective rate of interest.
Options- A. 22,588
- B. 32.588
- C. 42.588
- D. 43.588 Discuss
- 7. loan of $15 000 is taken out. If the interest rate on the loan is 7%, how much interest is due and what is the amount repaid if the loan was taken out on April 7 and is due in seven months
Options- A. 13615.52
- B. 14615.52
- C. 15615.52
- D. 16615.52 Discuss
- 8. How long will it take $3000 to earn $60 interest at 6%?
Options- A. 2months
- B. 3months
- C. 4months
- D. 5months Discuss
- 9. A merchant receives an invoice for a motor boat for $20 000 with terms 4/30, n/100. What is the highest simple interest rate at which he can afford to borrow money in order to take advantage of the discount?
Options- A. 247.67
- B. 237.67
- C. 227.67
- D. 215.67 Discuss
- 10. Find the principal which yields $25,000 when invested at 3% annually for 20 years.
Options- A. 13841.89
- B. 14821
- C. 13468
- D. 57389 Discuss
Simple Interest problems
Search Results
Correct Answer: 7125
Explanation:
total interest=1187.50*6
Correct Answer: 4.14
Explanation:
I = (P x T x R) /100
Correct Answer: Both I and II are not sufficient to answer
Explanation:
We know that, R = (100 x S.I) / (P x T)
Now I gives, S.I = Rs. 4000.
II gives, T = 4 years.
But, P is unknown. So, we cannot find R.
So, given data is insufficient to get R.
Correct Answer: Both I and II are necessary to answer
Explanation:
Let the rate be R% p.a.
I gives, P = Rs. 8000 and T = 4 years.
II gives, S.I = Rs. (8800 - 8000) = Rs. 800.
R = [100 x S.I] / [p x t ]= (100 x 800)/(8000 x 4) = 2 ½ % p.a
Thus, I and II both are needed to get the answer.
Correct Answer: 8500
Explanation:
P = 68000, R = % & T = 9 months (3/4 years)
Correct Answer: 22,588
Explanation:
Flat rate = 12%
n = 4 × 4
= 16
Effective rate =2n/(n+1) × flat rate
Correct Answer: 15615.52
Explanation:
I = prt = [15000 × 0.07 × (214/365) ]=615.52
Future value, S = P + I = $15 000 + $615.52 = $15 615.52
Correct Answer: 4months
Explanation:
t=I/pr
Correct Answer: 247.67
Explanation:
Suppose the merchant will take advantage of the cash discount of 4% of $20 000 = $800 by paying the bill within 30 days from the date of invoice. He needs to borrow $20 000 = $800 = $19 200. He would borrow this money on day 30 and repay it on day 100 (the day the original invoice is due) resulting in a 70-day loan. The interest he should be willing to pay on borrowed money should not exceed the cash discount $800.
r=I/pt=21.73%
The highest simple interest rate at which the merchant can afford to borrow money is 21.73%. This is a break-even rate. If he can borrow money, say at a rate of 15%, he should do so. He would borrow $19 200 for 70 days at 15%. Maturity value of the loan is $19 200(1+0.15(70/365))=$19 752.33
savings would be $20 000 ? $19 752.33 = $247.67
Correct Answer: 13841.89
Explanation:
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