Data Interpretation

Line Chart - 8

Data Interpretation Exercise Mode

Line Chart - 8

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Directions to Solve

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.

Question 1
A sum of ₹ 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
₹ 19,000
B
₹ 14,250
C
₹ 11,750
D
₹ 9500
Correct Answer: Option D

Difference = ₹ [(10% of 4.75) - (8% of 4.75)] lakhs

= ₹ (2% of 4.75) lakhs

= ₹ 0.095 lakhs

= ₹ 9500.

Question 2
An investor invested a sum of ₹ 12 lakhs in Company P in 1998. The total amount received after one year was re-invested in the same Company for one more year. The total appreciation received by the investor on his investment was?

A
₹ 2,96,200
B
₹ 2,42,200
C
₹ 2,25,600
D
₹ 2,16,000
Correct Answer: Option C

Amount received from Company P after one year (i.e., in 199) on investing ₹ 12 lakhs in it

= ₹ [12 + (8% of 12)] lakhs

= ₹ 12.96 lakhs.

Amount received from Company P after one year on investing ₹ 12.96 lakhs in the year 1999

= ₹ [12.96 + (10% of 12.96)] lakhs

= ₹ 14.256.

Appreciation received on investment during the period of two years

= ₹ (14.256 - 12) lakhs

= ₹ 2.256 lakhs

= ₹ 2,25,600.

Question 3
An investor invested ₹ 5 lakhs in Company Q in 1996. After one year, the entire amount along with the interest was transferred as investment to Company P in 1997 for one year. What amount will be received from Company P, by the investor?

A
₹ 5,94,550
B
₹ 5,80,425
C
₹ 5,77,800
D
₹ 5,77,500
Correct Answer: Option B

Amount received from Company Q after one year on investment of ₹ 5 lakhs in the year 1996

= ₹ [5 + (6.5% of 5)] lakhs

=₹ 5.325 lakhs.

Amount received from Company P after one year on investment of ₹ 5.325 lakhs in the year 1997

= ₹ [5.325 + (9% of 5.325)] lakhs

= ₹ 5.80425 lakhs

= ₹ 5,80,425.

Question 4
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
3:4
C
6:7
D
4:3
Correct Answer: Option D

Let the amounts invested in 2002 in Companies P and Q be ₹ 8x and ₹ 9x respectively.

Then, interest received after one year from Company P = ₹ (6% of 8x)
= ₹ 48 x.
100
and interest received after one year from Company Q = ₹(4% of 9x)
= ₹ 36 x.
100

Therefore Required ratio =
( 48 x )
100
= 4 .
( 36 x )
100
3

Question 5
In 2000, a part of ₹ 30 lakhs was invested in Company P and the rest was invested in Company Q for one year. The total interest received was ₹ 2.43 lakhs. What was the amount invested in Company P?

A
₹ 9 lakhs
B
₹ 11 lakhs
C
₹ 12 lakhs
D
₹ 18 lakhs
Correct Answer: Option D

Let ₹ x lakhs be invested in Company P in 2000, the amount invested in Company Q in 2000 = ₹ (30 - x) lakhs.

Total interest received from the two Companies after 1 year

    = ₹ [(7.5% of x) + {9% of (30 - x)}] lakhs

    = ₹ [ 2.7 - ( 1.5x ) ] lakhs.
100

Therefore [ 2.7 - ( 1.5x ) ] = 2.43     =>     x = 18.
100