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.
    A Rs.9,165 Correct Answer Incorrect Answer
    B Rs.9,000 Correct Answer Incorrect Answer
    C Rs.8,165 Correct Answer Incorrect Answer
    D Rs.5,165 Correct Answer Incorrect Answer

    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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