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Mathematics

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751

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Stocks And Shares

medium
Mathematics

A man buys Rs. 50 shares in a company which pays a 10% dividend. If the man gets 12.5% return on his investment, at what price did he buy the shares?

A
Rs.40
B
Rs.37.50
C
Rs.48
D
Rs.52
Explanation and memory cue

The dividend is 10% on Rs. 50 shares, so the dividend amount is Rs. 5. The man gets a 12.5% return on his investment, so the price he paid (P) satisfies 5/P = 12.5%, or 5/P = 0.125. Solving gives P = 5 / 0.125 = Rs. 40. However, this contradicts the options and the initial correct answer. Rechecking: If the man gets 12.5% return, then Price = Dividend / Yield = 5 / 0.125 = Rs. 40, which matches option A. So the initial correct answer A is correct. The explanation is updated accordingly.

752

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Stocks And Shares

medium
Mathematics

A man invests in a 16% stock at 128. What is the interest (yield) obtained by him?

A
16%
B
12.5%
C
8%
D
12%
Explanation and memory cue

The man invests in a stock with a nominal dividend rate of 16% but buys it at 128 (above the face value of 100). The effective yield (interest) is calculated as (Dividend / Market Price) × 100 = (16 / 128) × 100 = 12.5%.

753

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Stocks And Shares

medium
Mathematics

To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock needed to invest is: ________?

A
Rs. 10800
B
Rs. 10000
C
Rs. 14400
D
Rs. 16000
Explanation and memory cue

The stock pays 12% dividend on its face value. To get an annual income of Rs. 1200, the face value of stock needed is Rs. 1200 / 0.12 = Rs. 10,000. Since the stock is purchased at 90 (i.e., 90% of face value), the amount to invest = (Face value × Market price) / 100 = (10,000 × 90) / 100 = Rs. 9,000. Therefore, the amount of stock needed to invest is Rs. 9,000. Among the given options, Rs. 10,800 (Option A) is incorrect, and Rs. 10,000 (Option B) is the closest to the face value but not the investment amount. The correct investment amount is Rs. 9,000, which is not listed. However, since Rs. 10,000 is the face value and Rs. 10,800 is not mathematically correct, the best correct answer based on the options is Rs. 10,000 (Option B).

754

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Compound Interest (Varying Rates)

medium
Mathematics

If the rate of interest is 4% per annum for the first year, 5% per annum for the second year, and 6% per annum for the third year, then what is the compound interest on Rs 10,000 for 3 years?

A
Rs 1575.20
B
Rs 1600
C
Rs 1625.80
D
Rs 2000
Explanation and memory cue

The compound interest is calculated year-wise with different rates as follows: After 1 year, amount = 10000 × 1.04 = 10400; After 2 years, amount = 10400 × 1.05 = 10920; After 3 years, amount = 10920 × 1.06 = 11575.20. Compound interest = 11575.20 - 10000 = Rs 1575.20. This matches option A exactly, confirming it as the correct answer.

755

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Time and Work

medium
Mathematics

A and B can complete a work in 15 days and 10 days respectively. They started doing the work together, but after 2 days B had to leave and A alone completed the remaining work. The whole work was completed in ________?

A
8 days
B
10 days
C
12 days
D
15 days
Explanation and memory cue

A's work rate is 1/15 per day and B's is 1/10 per day. Together, they complete (1/15 + 1/10) = 1/6 of the work per day. In 2 days, they complete 2/6 = 1/3 of the work. Remaining work is 2/3, which A completes alone at 1/15 per day, taking (2/3) ÷ (1/15) = 10 days. Total time = 2 + 10 = 12 days.

756

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Compound Interest

easy
Mathematics

What amount does Kiran get if he invests Rs. 8000 at 10% p.a. compound interest for two years, compounding done annually?

A
Rs.9630
B
Rs.9680
C
Rs.9610
D
Rs.9650
Explanation and memory cue

The compound interest formula is A = P(1 + r)^n. Here, P = 8000, r = 10% = 0.10, and n = 2. So, A = 8000 × (1 + 0.10)^2 = 8000 × 1.21 = Rs. 9680. However, the closest option to the correct amount Rs. 9680 is option B, which is Rs. 9680, so the correct answer is B, not A. Correction: The correct answer is B.

757

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Compound Vs Simple Interest

medium
Mathematics

The compound interest accrued on an amount of Rs.44,000 at the end of two years is Rs.1,193.60. What would be the simple interest accrued on the same amount at the same rate in the same period?

A
Rs.10,840
B
Rs.10,720
C
Rs.10,560
D
Rs.10,280
Explanation and memory cue

Given the compound interest (CI) of Rs.1,193.60 on Rs.44,000 for 2 years, we find the annual interest rate r using the formula CI = P[(1 + r)^2 - 1]. Solving for r gives approximately 1.35% per year. The simple interest (SI) for the same principal, rate, and time is SI = P × r × t = 44,000 × 0.0135 × 2 ≈ Rs.1,188, which is close to the compound interest amount. The options given (all around Rs.10,000) seem incorrect for the question as stated. However, since option D is the closest and the question asks for simple interest at the same rate and period, the correct simple interest is approximately Rs.1,188, not Rs.10,280 as stated. The original options appear to be a mismatch or error. The correct simple interest should be around Rs.1,188, which is not listed in the options. Therefore, the question and options need correction. But based on the given data, the simple interest is about Rs.1,188.

758

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Simple Vs Compound Interest

medium
Mathematics

The difference between simple and compound interest (compounded annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is ________?

A
Rs 6500
B
Rs 6565
C
Rs 65065
D
Rs 65650
Explanation and memory cue

The difference between compound interest and simple interest for 2 years at 10% per annum is given by P × (r/100)^2, where P is the principal and r is the rate. Here, 65 = P × (10/100)^2 = P × 0.01, so P = 65 / 0.01 = Rs 6500.

759

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Time and Work

medium
Mathematics

A, B, and C can do a piece of work in 20, 30, and 60 days respectively. In how many days can A do the work if he is assisted by B and C on every third day?

A
12 days
B
15 days
C
16 days
D
18 days
Explanation and memory cue

A alone can complete 1/20 of the work per day, B can do 1/30, and C can do 1/60. On every third day, A is assisted by B and C, so the work done on the third day is 1/20 + 1/30 + 1/60 = 1/10. For the first two days, only A works, so 2 × 1/20 = 1/10. Thus, every 3 days, the work done is 1/10 + 1/10 = 1/5. Therefore, total days required = 3 × (1 ÷ 1/5) = 15 days.

760

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Compound Interest (Half-Yearly Vs Yearly)

medium
Mathematics

How much more would Rs. 20,000 fetch after two years if it is put at 20% p.a. compound interest payable half-yearly than if it is put at 20% p.a. compound interest payable yearly?

A
Rs.482
B
Rs.424
C
Rs.842
D
Rs.512
Explanation and memory cue

Calculating compound interest for Rs. 20,000 at 20% p.a. compounded half-yearly for 2 years gives a higher amount than when compounded yearly. The difference between these two amounts is Rs. 482, making option A correct.