📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Rahul secures a loan amounting to Rs. 8,800 from a bank,

      which charges an annual simple interest rate of 20%. He then allocates this sum into an investment that yields an annual compound interest of 30%, compounded yearly. Calculate the profit Rahul achieves after two years.
      A Rs. 2512 Correct Answer Incorrect Answer
      B Rs. 2552 Correct Answer Incorrect Answer
      C Rs. 2532 Correct Answer Incorrect Answer
      D Rs. 2542 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Amount paid to bank at the end of 2nd year = (8800 × 20 × 2)/100 + 8800 = Rs. 12320 Amount received from scheme = 8800 × (1.3)2 = Rs. 14872 Profit received by Rahul = 14872 – 12320 = Rs. 2552

      Practice Next
      More Simple and compound interest Questions

      Relevant for Exams:

      ask-question