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      Question

      Aman borrowed Rs. 56000 at 11% p.a. simple interest for

      2 years. He immediately invested the entire amount at 14% p.a. simple interest for the same duration. Find the amount he earned per year.
      A Rs.1610 Correct Answer Incorrect Answer
      B Rs.1205 Correct Answer Incorrect Answer
      C Rs.1680 Correct Answer Incorrect Answer
      D Rs.2454 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ,

      Interest to be paid by Aman at 11% p.a. after 2 years = (56000 × 11 × 2)/100 = Rs. 12320

      Interest earned by Aman at 14% p.a. after 2 years = (56000 × 14 × 2)/100 = Rs. 15680

      Therefore, amount gained by him in 2 years = 15680 – 12320 = Rs. 3360

      Therefore, amount gained by Aman per year = 3360/2 = Rs. 1680

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