Question
A took a loan of Rs.5320 at simple interest of 20% p.a.
and invested the same money in a scheme at simple interest of 30% p.a. Find the profit earned by A at the end of 3 years.Solution
Interest paid by A = (5320 × 3 × 20)/100 = Rs.3192 Interest received by A from the scheme = (5320 × 3 × 30)/100 = Rs.4788 Profit = 4788 – 3192 = Rs.1596
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