CAT & OMETs JEE JEE Foundation IPMAT GMAT Adda Success Stories

91- 6303239042 ⌛Last 1 Month

Question 54

An automobile financier claims to be lending money at simple interest but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes

Solution

Let the principle amount be 100

Simple interest for first 6 months = $$\frac{100 \times 1 \times 10}{100 \times 2}$$ = 5

Simple interest for next 6 months = $$\frac{105 \times 1 \times 10}{100 \times 2}$$ = 5.25

Total principle amount after 1 year = 100 + 5 + 5.25 = 110.25

Effective rate of interest = 10.25%

Hence, option B is the correct answer.

Was this solution helpful?

Get AI Help

View More Questions From Quant

Create a FREE account and get:

All Quant Formulas and Shortcuts PDF
100+ previous papers with solutions PDF
Top 5000+ MBA exam Solved Questions for Free

maruti sir image

MAT Quant Questions | MAT Quantitative Ability

MAT Profit And Loss Questions MAT Simple Interest Compound Interest Questions MAT Arithmetic Questions MAT Logarithms, Surds and Indices Questions MAT Inequalities Questions MAT Number Systems Questions MAT Averages Questions MAT Time Speed Distance Questions MAT Probability, Combinatorics Questions MAT Functions, Graphs and Statistics Questions MAT Averages, Ratio and Proportion Questions MAT Logarithms Questions MAT Miscellaneous Questions MAT Venn Diagrams Questions MAT Averages Mixtures Alligations Questions MAT Algebra Questions MAT Mensuration Questions MAT Percentages Questions MAT Number Series Questions MAT Quadratic Equations Questions MAT Data Sufficiency Questions MAT Coordinate Geometry Questions MAT Progressions and Series Questions MAT Remainders Questions MAT Linear Equations Questions MAT Time And Work Questions MAT Profit and Loss Questions MAT Time, Speed and Distance Questions MAT Geometry Questions

MAT DILR Questions | LRDI Questions For MAT

MAT Data Interpretation Basics Questions MAT DI with connected data sets Questions MAT Charts Questions MAT Routes And Networks Questions MAT Maxima-Minima Questions MAT Puzzles Questions MAT 2D & 3D LR Questions MAT Quant Based LR Questions MAT Coins and Weights Questions MAT Truth Lie Concept Questions MAT Arrangement Questions MAT Selection With Condition Questions MAT Games and Tournaments Questions MAT Scheduling Questions MAT Special Charts Questions MAT Quant Based DI Questions MAT Data Interpretation Questions MAT Table based DI Sets Questions MAT Venn Diagrams Questions MAT DI Miscellaneous Questions MAT Miscellaneous LR Questions MAT Data change over a period Questions

MAT Verbal Ability Questions | VARC Questions For MAT

MAT Odd One Out Questions MAT Para Jumbles Questions MAT Para Summary Questions MAT Reading Comprehension Questions MAT Vocabulary Questions MAT Critical Reasoning Questions MAT Verbal Ability Questions MAT Grammar and Sentence Correction Questions

Free MAT Topicwise Questions

MAT Averages, Ratio and Proportion MAT Truth Lie Concept MAT Charts MAT Verbal Ability MAT Quant Based LR MAT Special Charts MAT Number Series MAT Table based DI Sets MAT Venn Diagrams MAT Time And Work MAT Logarithms MAT Routes And Networks MAT Arrangement MAT Selection With Condition MAT Miscellaneous LR MAT Data change over a period MAT Percentages MAT Averages Mixtures Alligations MAT Profit And Loss MAT Venn Diagrams MAT Coordinate Geometry MAT Critical Reasoning MAT Para Summary MAT Mensuration MAT Grammar and Sentence Correction MAT Functions, Graphs and Statistics MAT Logarithms, Surds and Indices MAT Para Jumbles MAT Arithmetic MAT DI Miscellaneous MAT Puzzles MAT Ssc Reasoning MAT Data Sufficiency MAT Data Interpretation MAT DI with connected data sets MAT Time, Speed and Distance MAT Vocabulary MAT Games and Tournaments MAT Profit and Loss MAT Maxima-Minima MAT Quadratic Equations MAT Algebra MAT Simple Interest Compound Interest MAT Quant Based DI MAT Geometry MAT Progressions and Series MAT Data Interpretation Basics MAT Number Systems MAT Linear Equations MAT Time Speed Distance MAT Coins and Weights MAT Averages MAT Miscellaneous MAT Probability, Combinatorics MAT Odd One Out MAT Reading Comprehension MAT 2D & 3D LR MAT Scheduling MAT Remainders MAT Inequalities

Book Free CAT Mentorship

Get personalized CAT strategy from a 99%iler

500+ students mentored

CAT mentor

Phone Number

Preferred Time

Join CAT 2026 course by 5-Time CAT 100%iler

Start your IIM journey with the right preparation and crack CAT 2026.

Enroll Now

cracku download image

Ask our AI anything

AI can make mistakes. Please verify important information.