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.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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