Q. If a store sells an item for $80 after applying a discount of 20%, what was the marked price?
A.$100
B.$90
C.$110
D.$120
Solution
Let the marked price be x. After a 20% discount, the selling price is x - (0.20 * x) = 0.80x. Setting this equal to $80 gives 0.80x = $80, so x = $100.
Q. If a sum of money doubles itself in 5 years at simple interest, what will be the rate of interest?
A.10%
B.12%
C.15%
D.20%
Solution
Using the formula for simple interest, we know that the interest earned is equal to the principal. Therefore, if the principal doubles in 5 years, the rate of interest can be calculated as (100 * Interest) / (Principal * Time) = (100 * Principal) / (Principal * 5) = 20%. Thus, the rate of interest is 20%.
Q. If a sum of money doubles itself in 5 years at simple interest, what will be the rate of interest per annum?
A.10%
B.12%
C.15%
D.20%
Solution
Using the formula for simple interest, SI = PRT, where SI = Principal, R = Rate, and T = Time. If the principal doubles in 5 years, then SI = P. Therefore, P = PRT implies R = 1/5 = 20%. Hence, the rate of interest is 10%.
Q. If a sum of money is invested at a simple interest rate of 6% per annum, how much interest will be earned on a principal of $8000 after 4 years? (1920)
Q. If Partner A contributes 60% of the capital and Partner B contributes 40%, how should profits be divided if they agreed to split based on capital contribution?
A.60% to A and 40% to B
B.50% to A and 50% to B
C.70% to A and 30% to B
D.40% to A and 60% to B
Solution
Profits should be divided in accordance with their capital contributions, hence 60% to A and 40% to B.
Q. If Partner A contributes 60% of the capital and Partner B contributes 40%, how should profits be divided if they agree to split based on capital contribution?
A.60% to A and 40% to B
B.50% to A and 50% to B
C.70% to A and 30% to B
D.40% to A and 60% to B
Solution
Profits should be divided in accordance with their capital contributions, which are 60% for A and 40% for B.
Q. If the difference between the compound interest and simple interest on a certain sum of money for 2 years at 10% per annum is $50, what is the principal? (2000)
A.$1000
B.$1200
C.$1500
D.$2000
Solution
The difference between compound interest and simple interest for 2 years is given by SI * (r/100)^2. Setting this equal to $50 and solving gives Principal = $1200.
Q. If the difference between the compound interest and simple interest on a certain sum of money for 2 years at 10% is $50, what is the principal? (2000)
A.$1000
B.$1200
C.$1500
D.$2000
Solution
The difference between CI and SI for 2 years is given by P * (r^2)/100^2. Setting this equal to $50 and solving gives P = $1500.
