MCQ
Simple & compound interest, discount and partnership MCQ - Practice Questions with Answers
Solve 10 Simple & compound interest, discount and partnership questions for RAS/RPSC preparation.
Practice questions
Q1Rs 12,000 is lent at 8% per annum simple interest for 9 months. What is the simple interest?
Simple interest is SI = (P x R x T) / 100 and that time must match the annual rate. Since the rate is per annum, 9 months must be written as 9/12 = 3/4 year. So SI = 12000 x 8 x 3 / (100 x 4) = Rs 720. Rs 960 would be the interest for a full year, not for 9 months.
Q2A trader buys an item for Rs 800, marks it 25% above cost price and gives a 10% discount. Statement 1: The marked price is Rs 1,000. Statement 2: The profit percentage is calculated on the marked price. Which statement is correct?
Cost price, marked price and selling price are distinct. Marking Rs 800 by 25% above cost gives 800 x 125 / 100 = Rs 1,000, so the marked price statement is right. The same notes also state that profit or loss percentage is always calculated on cost price. Therefore, saying that profit percentage is calculated on marked price is the specific error.
Q3Match the rule with its correct use. List I: 1. Simple interest 2. Discount percent 3. Partnership profit ratio 4. Half-yearly compounding List II: a. Capital x time b. Use half the annual rate and twice the number of years c. (P x R x T) / 100 d. Discount x 100 / marked price
There are each rule directly. Simple interest is (P x R x T) / 100. Discount percent is discount x 100 divided by marked price, because discount is measured on marked price. Partnership profit is divided in the ratio of capital x time. For half-yearly compounding, the annual rate is halved and the number of periods is doubled. These four matches give 1-c, 2-d, 3-a, 4-b.
Q4Which setup is correct for finding the amount on a principal at 12% per annum compounded half-yearly for 1 year?
For half-yearly compounding, to use half the annual rate and twice the number of years as the number of periods. A 12% annual rate becomes 6% for each half-year, and 1 year has 2 half-yearly periods. Therefore the amount is written as principal x (1 + 6/100)^2, or principal x (1.06)^2. Using 12% twice would double-count the annual rate.
Q5An item is marked at Rs 1,200 and a discount of 15% is offered. What is its selling price?
Discount is defined as the reduction from marked price and give selling price = marked price x (100 - discount%) / 100. A 15% discount on Rs 1,200 is 1200 x 15 / 100 = Rs 180. The selling price is therefore 1200 - 180 = Rs 1,020. The base for discount is the marked price, not cost price or selling price.
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More questions
6Assertion (A): A 20% discount followed by a 10% discount on a marked price of Rs 1,000 gives a final selling price of Rs 720. Reason (R): In successive discounts, the second discount is applied on the reduced price, not on the original marked price.
7A and B invest Rs 3,000 and Rs 5,000 respectively for the same time. The total profit is Rs 16,000, and A is to receive Rs 1,000 as salary for managing the business before the remaining profit is shared. What is A's total receipt?
8Assertion (A): A 20% rise followed by a 20% fall makes the final value 4% lower than the starting value. Reason (R): In successive percentage change, the second change acts on the changed value, and decreases are taken with a negative sign. Choose the correct answer.
9A sum of Rs 12,000 is lent at 8% per annum simple interest for 9 months. What is the simple interest?
10Read the statements and choose the correct conclusion. Statement 1: A and B invest Rs 3,000 and Rs 5,000 respectively for the same time. Statement 2: Total profit is Rs 16,000, and A must receive Rs 1,000 salary before profit sharing. What is A's total receipt?