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A man borrows Rs.360. If he pays it back in 12 monthly

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A man borrows Rs.360. If he pays it back in 12 monthly  [#permalink]

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New post Updated on: 09 Oct 2012, 04:06
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A man borrows Rs.360. If he pays it back in 12 monthly installments of Rs.31.50, what is his interest rate?

A. 1.5%
B. 4.5%
C. 10%
D. 5%

Originally posted by sairasheikh86 on 09 Oct 2012, 01:15.
Last edited by Bunuel on 09 Oct 2012, 04:06, edited 2 times in total.
Renamed the topic and moved to PS forum.
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Re: interest rate problem  [#permalink]

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New post 09 Oct 2012, 02:25
sairasheikh86 wrote:
9. A man borrows Rs.360. If he pays it back in 12 monthly installments of Rs.31.50, what is his interest rate?

A. 1.5%
B. 4.5%
C. 10%
D. 5%


Total amount paid in 12months = 31.50 * 12 = 378
Interest paid = 378 = 360 = 18

SI = P*R*T/100
18 = 360 * R * 1 / 100
=> R = 5%

Hope it helps!
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Re: A man borrows Rs.360. If he pays it back in 12 monthly  [#permalink]

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New post 09 Oct 2012, 06:27
1
sairasheikh86 wrote:
A man borrows Rs.360. If he pays it back in 12 monthly installments of Rs.31.50, what is his interest rate?

A. 1.5%
B. 4.5%
C. 10%
D. 5%


Instead of paying monthly 360/12 = 30Rs, the man pays 31.50Rs. Therefore, the interest rate is 1.5/30 = 0.5/10 = 5/100 = 5%.

Answer D
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Re: A man borrows Rs.360. If he pays it back in 12 monthly  [#permalink]

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New post 09 Oct 2012, 07:49
31.50*12=378

378-360=18

18 is amount which we pay as a intrest so...18/360=1/20=5%
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Re: A man borrows Rs.360. If he pays it back in 12 monthly   [#permalink] 09 Oct 2012, 07:49
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