Read the following Graph:
Two different finance companies declare fixed annual rate of interest on the amounts 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 two Companies P and Q over the years are shown by the line graph provided below. Annual Rate of Interest Offered by Two Finance Companies Over the Years.
Q.1 A sum of Rs. 4.75 lakhs was invested in Company Q in 1999 for one year. How much more interest would have been earned if the sum was invested in Company P?
A) Rs. 19,000
B) Rs.14250
C) 11750
D) 9500
Ans. D
Difference = Rs. [(10% of 4.75) – (8% of 4.75)] lakhs
= Rs. (2% of 4.75) lakhs
= Rs. 0.095 lakhs
= Rs. 9500.
Q.2 If two different amounts in the ratio 8:9 are invested in Companies P and Q respectively in 2002, then the amounts received after one year as interests from Companies P and Q are respectively in the ratio ?
A) 2:3
B) 6:4
C) 3:7
D) 4:3
Ans. D
Let the amounts invested in 2002 in Companies P and Q be Rs. 8x and Rs. 9xrespectively.
Then, interest received after one year from Company P = Rs. (6% of 8x)
= Rs. 48 x
100
and interest received after one year from Company Q = Rs. (4% of 9x)
= Rs. 36 x
100
Required ratio = 48 x
100
= 4
36 x
100
3
Q.3 In 2000, a part of Rs. 30 lakhs was invested in Company P and the rest was invested in Company Q for one year. The total interest received was Rs. 2.43 lakhs. What was the amount invested in Company P?
A) Rs. 9 lakh
B) Rs. 11 lakh
C) Rs. 12 lakh
D) Rs. 18 lakh
Ans. D
Let Rs. x lakhs be invested in Company P in 2000, the amount invested in Company Q in 2000 = Rs. (30 – x) lakhs.
Total interest received from the two Companies after 1 year
= Rs. [(7.5% of x) + {9% of (30 – x)}] lakhs
= Rs. 2.7 – 1.5x lakhs.
100
2.7 – 1.5x = 2.43 x = 18
100
