A dishonest financier claims to be lending money at simple interest, but he includes the interest every four months for calculating the principal. If he is charging an interest of 3%, the effective rate of interest becomes:
3.03%
Let P be the principal amount. Simple interest for 4 months at 3% = P * (3/100) * (4/12) = P * 0.01 Amount after 4 months = P + P * 0.01 = 1.01P For the next 4 months, the interest is calculated on 1.01P. Simple interest for the next 4 months = 1.01P * (3/100) * (4/12) = 1.01P * 0.01 = 0.0101P Amount after 8 months = 1.01P + 0.0101P = 1.0201P For the next 4 months, the interest is calculated on 1.0201P. Simple interest for the next 4 months = 1.0201P * (3/100) * (4/12) = 1.0201P * 0.01 = 0.010201P Amount after 12 months = 1.0201P + 0.010201P = 1.030301P Effective rate of interest = (1.030301P - P) / P * 100 = 3.0301% ≈ 3.03% Therefore, the effective rate of interest becomes approximately 3.03%.
Important Questions from Dishonest Dealings
A merchant claims that he sells his goods at CP. But uses a weight of 900 g for the 1 kg weight. find his gain %
A shopkeeper cheats to the extent of 9% while buying and selling fruits, by using tampered weights. His total gain in percentage is:
A. 18.25
B. 18.81
C. 19.78
D. 18.5
What is the faulty weight used by a dishonest shopkeeper instead of the original weight of 1 kg to get a profit of 25%?
A dishonest shopkeeper claims to sell rice at the cost price of ₹95 per kg, but the weight he uses has 1 kg written on it, while it actually weighs 950 g. The profit he thus earns on selling rice having an actual weight of 95 kg rice is:
A shopkeeper cheats to the extent of 11% while buying and selling fruits, by using tampered weights. His total gain in percentage is.
A. 23.25
B. 23.21
C. 24.71
C. 23.5
