__AFB Last Minute Revision__

Paper XI

Paper XI

Explanation:

We need to calculate the total amount to be paid by him after 4 years, So it will be Principal + simple interest. So, =>500+500*5*4/100

=>Rs.600

2. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:

Explanation:

S.I. for 1 year = Rs. (854 - 815) = Rs. 39.

S.I. for 3 years = Rs.(39 x 3) = Rs. 117. Principal = Rs. (815 - 117) = Rs. 698.

3. A person invested Rs. 100000 in a bank FDR @ 6% p.a. for 1 year. If interest is compounded on yearly basis, the amount payable shall be ......

Solution:

P = 100000

R = 6% yearly

T = 1 yr Since compounding is annualy and its only 1-time investment, the formula to be used:

FV = P * (1+R)^T So,

FV = 100000 * (1+0.06)^1

= 106000 Ans.

4. A person raised a house loan of Rs. 10 lac @ 12% ROI repayable in 10 years. Calculate EMI.

P = 10 lac

R = 12% / 12 = 0.01% (In EMI or Equated Monthly Installment), we need to find monthly rate, so we divide rate by 12)

T = 10 *12 = 120 (In EMI or Equated Monthly Installment, we multiply time with 12) The formula of EMI = P * R * (1 + R)^T ÷ { (1 + R)^T - 1 } So,

EMI = 1000000*0.01*(1+0.01)^120 ÷ {(1+0.01)^120 – 1}

= 14347 Ans

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