Question
'R' took a loan of Rs. 40,000
from a bank with a compound interest rate of 15% per annum and then invested the same amount at a simple interest rate of 25% per annum for an equal period. Determine the profit made by 'R' after 3 years.Solution
ATQ,
Compound interest amount to be paid = 40,000×(1+15/100)3 = Rs.60,835 Compound interest paid by 'R' = 60,835 - 40,000 = Rs.20,835 Simple interest earned by 'R' = 40,000×25×3÷100 = Rs.30,000 Required profit = 30,000 - 20,835 = Rs.9,165
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