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
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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