Aptitude Day 187

Problems on Simple Interest:

1. A person borrows 10000 for 3 years at 5% p.a. simple interest. He immediately lends it to another person at 3(5/9) p.a. for 3 years. Find his gain in the transaction per year.

Solution:

                 R = 3(5/9) = 32/9.

                 Total Gain = 10000*3*5/100 – 10000*(32/9)*3/100

                          = 10000*3/100 [5-32/9]

                          = 300 [(45-32)/9]

                          = 300(13/9)

                          = 433.29.

                 Gain per year = 433.29/ 3 = 144.43.

2. How much time will it take for an amount of 500 to yield 250 as interest as 5% per annum of simple interest?

Solution: 

                  S.I = PTR/100

                  250 = 500*5*T/100

                  T = 10 years.