Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Quantitative Reasoning

Topic

Data Interpretation & Stats

Question:

Two different finance companies declare a fixed annual rate of interest on the amount invested by investors with them. The interest rate declared by these companies can vary from year to year depending on the variation in the country's economy and the interest rate of the banks. The annual rate of interest offered by the two companies P and Q is shown in the graph below. Study the graph and answer the question.

Annual percentage rate of interest offered by two finance companies P and Q over the years.

If two sums in the ratio 9 : 10 are invested in companies P and Q respectively in 1999, then what is the ratio of the simple interests received from companies P and Q respectively after one year?

Options:

7 : 8

8 : 9

9 : 8

8 : 7

Correct Answer:

9 : 8

Explanation:

Sums are invested for P & Q in 1999 in ratio = 9 : 10

Rate of interest for P & Q is 10% & 8% respectively.

Simple interest for P in 1999 : Simple interest for Q in 1999

       \(\frac{9R×10×1 }{100}\)     :     \(\frac{10R×8×1 }{100}\)

                                       9         :           8