Instructions

Study the following graph to answer these questions

Three different finance companies declare fixed annual rate of interest on the amount invested with them by investors. The rate of interest offered by these companies may differ from year to year depending on the variation in the economy of the country and the banks rate of interest. The annual rate of interest offered by the three companies P, Q, and R over the year are shown by the line-graph provided below.

                           Annual Rate of Interest Offered by three Finance

                                           Companies Over the Years


Question 94

A sum of Rs. 4.75 lakhs was invested in Company Q in 2009 for one year. How much more interest would have been earned if the sum was invested in Company P?

Solution

Difference =   Rs. [(10% of 4.75) - (8% of 4.75)] lakhs

=  Rs. (2% of 4.75) lakhs

= Rs. 0.095 lakhs

= Rs. 95000


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