Question
A person borrowed Rs. 50,000 at a rate of 12% per annum
for one year. He then lent it out as two separate loans to D and E. He lent Rs. 20,000 to D at 20% per annum for a year and the remainder to E at 18% per annum for the same period. Calculate the total profit or loss from the transaction after a year.Solution
ATQ, For the borrowed amount 
For the amount lent to D: 
For the amount lent to E:- 
Total return from D and E: 24000 + 35400 = 59400 Net profit: Profit = 59400 − 56000 = 3400 Therefore, the person makes a profit of Rs.3400
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