Question
Amit took a loan of Rs. 36000 at 10% per annum simple
interest for 3 years. He invested the full amount in a scheme offering 13% p.a. simple interest for 3 years. Calculate Amit's annual profit.Solution
ATQ,
Interest to be paid by Amit at 10% p.a. after 3 years = (36000 × 10 × 3) / 100 = Rs. 10800 Interest earned by Amit at 13% p.a. after 3 years = (36000 × 13 × 3) / 100 = Rs. 14040 Therefore, amount gained by him in 3 years = 14040 – 10800 = Rs. 3240 Therefore, annual profit of Amit = 3240 / 3 = Rs. 1080
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