__AFB Last Minute Revision__

Paper V

Paper V

Let us first find the principal Amount

Simple Interest for 6 years @ 6% = 2160

So, for 1 year @ 6% = 2160/6 = 360

So, the Principal Amount = 360/6*100 = 6000 Now let us calculate, compound interest on Rs. 6000 at 6% p.a for 6 years

A = P(1+r/100)^n

= 6000 (1+6/100)^6

= 6000 (1.06)^6

= 6000 (1.4185)

= 8511 CI = Amount - Principal

= 8511 - 6000

= 2511 So, compound interest on Rs. 6000 at 6% p.a for 6 years is : Rs. 2511

2. Ram borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends money to Rahul at 25/4% p.a. for 2 years. Find the gain of one year by Ram. Two things need to give attention in this question, First we need to calculate gain for 1 year only. Second, where we take money at some interest and lends at other, then we use to subtract each other to get result in this type of question.

Lets solve this Simple Interest question now. Gain in 2 year = [(5000×254×2100)-(5000×4×2100)]

= (625-400)

= 225

So gain for 1 year = 225/2 = 112.50

3. A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is:

Explanation:

By investing Rs. 1552, income = Rs. 128.

By investing Rs. 97, income = Rs. 128/1552 x 97 = Rs. 8

Dividend = 8%

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