Kindly solve

1. find the effective rate of interest of 9.9% p.a calculate monthly

a).9.9%                                                                                                                                                                              b).11.36%

c).9.36%                                                                                                                                                                            d).10.36%

 

2. if the SI. on 1400/- at ertain rate of interest for 3 years is less than that on 1800/- for the same period & same rate of interest 80/- then the rate of interest is

a). 6.67%                                                                                                                                                                         b).7.67%

c).5.67%                                                                                                                                                                              d).none

Replies (2)

answer for q.no 2 is (a) i.e 6.667%

x        =1400 * 3 *a   ------------> (1)

x+80 =1800 * 3 *a  -------------> (2)

(2) - (1)

   1200 a = 80

therefore, a =0.06666667

i.e 6.67%

answer for q.no 1 is  (d) ; i.e 10.36%

effective rate of interest = (1+9.9%/12)  ^ 12 -1

                                           = .103618

i.e 10.36% 

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